Since it was founded in 1952, the Banco Nacional de Desenvolvimento Econômico e Social (BNDES; Brazilian National Bank for Economic and Social Development) has been at the centre of Brazil's industrialisation and development strategy. It played a key role in the evolution of policies from import substitution to market‐opening and privatisation, to the ‘new developmentalism’. The article evaluates and discusses whether BNDES fulfils the three typical functions expected of national development banks: financial sector development; business climate enhancement; and knowledge services.