Prime Minister Dr. Godwin Friday has clarified the mandate of the proposed National Development Bank, emphasizing that the institution will operate on professional business principles rather than functioning as a “charity”.
Speaking at a press conference following a high-level state visit to the Republic of China (Taiwan), Dr. Friday shared that his administration is moving forward with the bank to provide much-needed capital to citizens who are currently “locked out of the system”. To support this initiative, the Taiwanese government has committed a grant of at least $2 million USD to help capitalize the bank, with additional funding potentially available on soft terms.
While the bank is designed to be supportive, the Prime Minister was firm about its operational structure. “It’s a bank. It’s not a charity,” Dr. Friday stated, explaining that the institution will be managed on business principles to ensure its long-term viability. He noted that the bank would offer an “environment of encouragement” through mentorship and support to help small businesses succeed.
According to the Prime Minister, the success of the National Development Bank will not be measured by how much it pays back to the government in dividends. Instead, the true metric of success will be the amount of economic activity it generates and the number of new businesses that are created and survive under its wing.
Addressing potential fiscal risks, Dr. Friday noted that the government is incorporating governance concerns raised by the International Monetary Fund (IMF) to ensure the bank does not become an additional debt burden for the state.
The development bank is a cornerstone of a “deepened” 45-year diplomatic relationship with Taiwan.
“We are looking for every opportunity to… put money in people’s pocket in very real ways,” Dr. Friday concluded, framing the bank as a tool to make the population more productive and the economy more vibrant.
