The China Development Bank (CDB) is a financial institution in the People’s Republic of China (PRC), led by a cabinet minister at the Governor level, under the direct jurisdiction of the State Council. As one of three policy banks in China, it is responsible for raising funds for large-scale infrastructure projects, including the Three Gorges Dam and the Shanghai Pudong International Airport. Established by the Policy Banks Law of 1994, the bank is described as the engine that powers the national government’s economic development policies.
Debts issued by the China Development Bank are owned by local banks and treated as risk-free assets under the proposed People’s Republic of China capital adequacy rules (i.e. the same treatment as PRC government bonds). The bank is the second-largest bond issuer in China after the Ministry of Finance. In 2009, it accounted for about a quarter of the country’s yuan bonds and is the biggest foreign-currency lender.