DEFINITION of 'Multilateral Development Bank - MDB'
A financial institution that provides financing for national development. The bank is formed by a group of countries, consisting of both donor and borrowing nations. Furthermore, an MDB offers financial advice regarding development projects.
BREAKING DOWN 'Multilateral Development Bank - MDB'
The best-known multilateral development bank is the Word Bank, which extends loans and credits to a plethora of countries. Other popular MDBs include the African Development Bank and the Asian Development Bank.