If developing countries allocate only 1% of their foreign exchange reserves to the paid-in capital of regional and sub-regional institutions, this would amount to $50 billion at current levels of reserves. Assuming a ratio of loans-to-capital of 2.4 times – an estimate based on the ratio of the successful and financially sound Andean Development Corporation – the expanded regional and sub-regional development banks or new ones could generate additional lending of approximately $120 billion.