Blended Finance: Implications for Supervisors

This report, aimed at financial supervisors and regulators, unpacks the key implications of the growing blended finance market. It explores how these complex financing structures affect financial stability, consumer protection, and institutional risk management within supervised entities. The paper highlights the urgent need for supervisors to build their capacity to understand and oversee blended finance activities within their jurisdictions. It emphasizes the importance of clear regulatory frameworks and effective coordination between development finance institutions (DFIs) and supervisory agencies to foster a responsible and sustainable blended finance ecosystem.