From a rather microeconomic perspective, the role of local financial institutions—especially public development banks—has been underscored, as they may boost structural change through productive financing in sectors with high social return in the long term, and which usually access less-than-optimal financing through traditional commercial banks because of the uncertainty lying behind this type of investments.
The challenges inherent to the management of these public institutions have been analyzed, as their goal is other than maximizing profit. However, they may not overlook the impact of their measures on net worth, and must achieve some level of profitability to reinvest their earnings.