þróunarbanka

The Icelandic word þróunarbanki translates to "development bank" in English. It refers to a financial institution whose primary purpose is to support economic development. These banks typically focus on long-term investments in specific sectors or projects that are deemed crucial for national or regional growth. Unlike commercial banks that primarily aim for profit, development banks often operate with a mandate to foster employment, innovation, or social progress.

In Iceland, the concept of a þróunarbanki has been discussed and implemented in various forms over time, often tied to specific national development strategies. Such institutions might provide funding for infrastructure projects, support small and medium-sized enterprises, or invest in renewable energy and technology sectors. The exact structure and objectives of a þróunarbanki can vary significantly depending on the prevailing economic policies and priorities of the Icelandic government. Their role is generally to fill perceived gaps in the market where private capital might be insufficient or unwilling to invest due to higher risk or longer payback periods.