Special category deposit accounts, diaspora bonds, the securitization of future remittances, and transnational loans are among the financial instruments whose potential have yet to be fully exploited. Multilateral institutions as well as public and private institutions can help developing countries improve their banking sector and raise credit ratings. One of the fundamental challenges for many countries that lack foreign investment is the perception of economic, political, or social risk among the diaspora and general investors. While members of the diaspora may have a desire to contribute to development in their countries of origin given their home bias, inherent political risks.
