This study is focused on two institutions (Asian Development Bank and African Development Bank) established to serve as sources of international development finance for the developing countries which are members of them. Specifically, it seeks to answer the following questions: (1) What are the financial sources of both banks and the rates of interest charged in the operations of said resources? (2) To what extent were loans granted by both institutions to assist their individual developing member countries between January 1, 1981 and December 31, 1985? (3) What type of development activities and economic sector are of high priority in the sectoral distribution of loans? and (4) What are the similarities and differences in the two banks? This study would be useful in providing the basis for those in authority in both institutions to institute reforms. Both banks can also learn lessons from each others experience in the area of loans operations.