Our key findings are as follows:

First, generally, NDBs are funded either by public agencies or market actors. Either way, the government plays an important role in the financing process.

Second, bond issuance is one of the most important funding mechanisms by which NDBs secure sovereign creditworthiness to raise funds from capital markets. Through either explicit or implicit guarantees, governments support NDBs to issue long-term bonds at relatively low prices.

Third, internal financing and equity financing from governments play more important roles in NDBs than in commercial banks.

Fourth, governments support NDBs’ funding mainly through share capital, borrowing and deposits from governments, the establishment of trust funds, government subsidies, tax incentives, service fees, and various other means.

Fifth, on-lending and ODA from NDBs in HICs and MDBs play important roles in funding NDBs in developing countries, especially LICs.

Last but not least, although NDBs that take household deposits may be prone to liquidity risks and maturity mismatch, nearly 30 percent of NDBs resort to take household deposits because they may have limited alternative funding sources.

Building on the key characteristics of funding sources for NDBs worldwide, the present report finally proposes ten research questions for further investigation, including the appropriate financing structures of NDBs, the determinants of their financing structures, the impact of their financing structures upon the loan maturity, risk-taking behaviors, and financial instruments, and the role of NDB bonds in incubating domestic bond markets. We encourage scholars who may be interested in this area to join hands to conduct further research.