image

New Development Bank


Overview:


EstablishedJuly 2014
Membership5 Members (BRICS)
HeadquarterShanghai, China.
PresidentK.V.Kamath (India)

The New Development Bank (NDB) or BRICS Development Bank is a multilateral development bank, established by the BRICS countries.

Establishment:

During the sixth BRICS summit in Fortaleza, Brazil in the year 2014, the leaders signed an agreement for establishing the New Development Bank, and the bank started working from 2015.

In the Fortaleza declaration, the leaders stressed that the New Development Bank will strengthen cooperation among BRICS and will supplement the efforts of multilateral and regional financial institutions for global development, thus contributing to collective commitments for achieving the goal of strong, suitable and balanced growth.

The initial authorized capital of the bank was $100 billion, and the initial subscribed capital was $50 billion, shared equally among the member states, and according to the agreement on the NDB the voting power of each member is equal.

Members:

All the BRICS (Brazil, Russia, India, China, South-Africa) countries are the members of the New Development Bank, and for expansion of membership of NDB, the bank's articles of agreement specify that all the members of the United Nations could be the members of the New Development Bank, however, the share of the BRICS countries can never be less than 55% of voting power.

flag-iconBrazilflag-iconRussia
flag-iconIndia
flag-iconChinaflag-iconSouth-Africa

The Objectives of the Bank:

The main objectives of the NDB are to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging countries. The NDB also cooperate with the other international financial institutions like the World Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank etc.

Headquarter:

The headquarter of the New Development Bank is situated in Shanghai, China. And the first regional office is located in Johannesburg, South Africa.

India and The New Development Bank:

India is an active member of the bank and also one of the founding members of NDB with equal voting rights according to the agreement.




Related Topics