Abstract <p>The transition of states to a sustainable, technologically advanced growth model requires sustainable financial instruments. The article analyzes the operating features of development banks in various countries and assesses the possibilities of applying foreign experience to improve the Russian model. In many countries, development banks are becoming key participants in modernization processes, and their experience is of significant practical value. For Russia, studying the activities of foreign development banks allows us to identify elements that can be adapted into the national economic system. This is especially important given the need to increase investment activity, develop infrastructure, and expand support for high-tech industries. The aim of the study is to comprehensively analyze the role and place of development banks in providing long-term financing to priority sectors in the context of global digitalization and transformation of financial markets. Research methods include a comprehensive methodological apparatus. A comparative analysis of the financial characteristics of development banks in countries with different economic structures is applied. Structural and functional analysis was used to assess the place of development institutions in the financial intermediation system. A comparative analysis revealed that Russia lags behind in terms of the scale of development institution assets. Development banks in developed countries have already passed the formation stage, their activities are stable and priorities have been defined. The focus is on sustainable development, digitalization and innovation. Global and Russian experience confirms that, when properly organized, their activities become a vital tool for economic modernization, supporting innovation, and creating conditions for sustainable development.</p>