BRICS bank starts its operations from Shanghai China [ Current Affairs ]
The New Development Bank (NDB) created by Brazil, Russia, India, China and South Africa (BRICS) nations formally started its operations from its headquarters in Shanghai, China. This bank was formerly known as BRICS Development Bank.
The chief guests included Chinese Finance Minister Lou Jiwei, Shanghai Mayor Yang Xiong and the bank’s first President K V Kamath from India.
New Development Bank (NDB) Agreement for establishing NDB was signed during the 6th BRICS Summit being held in Fortaleza, Brazil in April, 2014 and was formally launched at the 7th BRICS summit held in Ufa, Russia in July 2015.
Purpose: To fund infrastructure projects in the emerging economies. This is considered as a substitute institute to west dominated World Bank and the International Monetary Fund (IMF).
Capital: It will have initial capital of US 50 billion dollars and this aimed to increase upto US 100 billion dollars within the next few years.
Each member’s role: All nations will have an equal say in the bank’s management, irrespective of GDP size and will also make equal contribution in establishing a startup capital.
President: Eminent banker Kundapur Vaman Kamath from India is President of Bank for the first five years i.e. till 2020.
- Published on: July 24, 2015