This paper looks at the role, evolution and regional coverage of the system of multilateral and national development banks (MDBs and NDBs) and international climate change funds. It analyzes the roles that development banks should play to correct the market failures that characterize financial systems, particularly in emerging and developing countries. It concludes that MDBs should be capitalized to better support the recovery of emerging and developing countries after the COVID-19 crisis. They should also be aligned with the Sustainable Development Goals, and enhance the role they play in promoting innovation and structural transformation, and in supporting climate change mitigation and adaptation. It underscores that the development banks should work as a system, and that better networking between MDBs and NDBs is essential and should be systematically monitored. Finally, it points out that MDBs should support the development of strong NDBs in the regions where these institutions are underrepresented.