ADBC provides funds for agricultural development projects in rural areas and Exim Bank of China specializes in trade financing, investment and international economic cooperation.
[6]: 32 This approach allowed policy banks to raise funds at a time when neither the market nor the state could provide the necessary capital.
[5]: 70 This in turn empowered those policy banks to make significant loans in Eurasia, Latin America, Africa, and the Middle East.
[6]: 154 The least profitable projects are in the last category and are the only ones where policy banks will request that host governments offer state-backed revenues or collateral.
[6]: 154 Generally, policy banks have used market means to restructure or forebear debt issues as opposed to loan forgiveness.
[6]: 105 Chen writes that these practices challenge narratives of a "state-led" (as a opposed to a "market-led") approach to development assistance by China.