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The age of new technologies forms a new paradigm for the functioning of the economic system. New living conditions require serious and consistent changes in all areas. The current dynamics of development determines the emergence of new structures and mechanisms of interaction. The driving force behind the implementation of breakthrough technologies is development institutions that facilitate the implementation of new projects. The essential moment in the implementation of new requirements is the priorities of digital development. In this regard, the latest legislative innovations, as well as a number of measures for the restructuring of development institutions have given a new impetus to ensure progressive innovative development. The article discusses new conditions for the development of institutions, and also offers promising areas of interaction between banks and development institutions. The analysis of the models of work of development institutions is carried out. The main forms of financing innovative activities are considered. The mechanisms of interaction of the participants in the process have been determined, including taking into account regional characteristics. Legislative initiatives aimed at stimulating the development of innovations have been analyzed. The formulated proposals will be able to ensure a more dynamic development of innovations, which will allow launching the entire chain of updates in the technological field.

Interaction of banks and development institutions in the system of innovation priorities