INTERNATIONAL
FINANCIAL INSTITUTIONS:
International financial institutions (IFIs)
are financial institutions that have been established by more than
one country, and hence are subjects of international laws. Their
owners or shareholders are generally national governments,
although other international institutions and other organizations
occasionally figure as shareholders. The most prominent IFIs are
creations of multiple nations, although some bilateral financial
institutions exist and are technically IFIs. Many of these are
multilateral development banks (MDB).
WHAT ARE INTERNATIONAL
FINANCIAL INSTITUTIONS (IFI’S)
World Bank Group (WBG):
International Bank for Reconstruction and Development (IBRD)
International Development Association (IDA)
International Finance Corporation (IFC)
Multilateral Investment Guarantee Agency (MIGA)
International Centre for Settlement of Investment Disputes (ICSID)
International Monetary Fund (IMF)
Regional development banks, such as:
African Development Bank (AFDB)
Asian Development Bank (ADB)
CONTINUED…..
Inter-American Development Bank (IADB)
Bank of the South
European Bank for Reconstruction and Development (EBRD)
Other regional financial institutions e.g. European Investment
Bank (EIB) Export Credit Agencies of individual country
governments, such as:
US Export Import Bank (EXIM)
Japan External Trade Organization
Hermes Kreditversicherungs (Germany)
INTERNATIONAL
FINANCIAL INSTITUTIONS:
Their common goal…….
to reduce global poverty and improve people's living
conditions and standards
to support sustainable economic, social and
institutional development
to promote regional cooperation and integration.
PLANS LED BY G-20
SUMMIT IN
WASHINGTON D.C:
1. World Bank Group (WBG)
2. International Monetary Fund
(IMF)
3. European Bank for
Reconstruction and
Development (EBRD)
4. Asian Development Bank (ADB)
5. African Development Bank
(AFDB)
6. Inter-American Development
Bank (IDB)
G20 leaders and delegates attend the
Summit on Financial Markets and the World
Economy Saturday at the National Building
Museum in Washington, D.C. on November
15, 2008.
WORLD BANK
GROUP:
The term "World Bank" generally refersto
just the IBRD and IDA
The World Bank's activities are focused on
developing countries, in fields such as
human development, agriculture and rural
development, environmental protection,
infrastructure, and governance.
It isconcernedwith assistingits member
countriesto achieve sustainedeconomic
growth. It functionsasan intermediary for
the transfer of financial resourcesfrom the
more developed to the lessdeveloped
countries.
WORLD BANK
Formation- 27 December 1945
Type- International organization
Legal status- Treaty
Purpose/focus-
Economic development,
poverty elimination
Membership- 187countries
President- Robert Zoellick
Jim Yong Kim (Elect)
Main organ- Board ofDirectors
Website- worldbank.org
ROLE OF WORLD BANK:
FIGHTSPOVERTYBYOFFERING DEVELOPMENTALASSISTANCETO
MIDDLE INCOME AND LOW INCOME COUNTRIES.
GIVE LOANSAND OFFERSADVICE AND TRAINING IN BOTH THE
PRIVATE AND PUBLIC SECTORS.
AIMSTO ELIMINATE POVERTY BYHELPING PEOPLE
HELP THEMSELVES.
THE WORLD BANK GROUPCREATEDA NEW $1.2BILLION RAPID
FINANCING FACILITY- THE GLOBALFOOD RESPONSEPROGRAM
(GFRP)- IN MAY 2008 TO SPEEDASSISTANCETO THE NEEDIEST
COUNTRIES.GFRPHASAPPROVED AND BEGUNDISBURSING$200
MILLION IN 21COUNTRIES.
INTERNATIONAL BANK
FOR RECONSTRUCTION
AND DEVELOPMET
(IBRD):
1.The International Bank for Reconstruction
and Development was established in 1945.
2. It had 184 members.
3. The IBRD is an international organization
whose original mission was to finance the
reconstruction of nations devastated by
World War II.
4. Now, its mission has expanded to fight
poverty by means of financing states.
5. Cumulative lending: $394 billion
6. Fiscal 2004 lending: $11 billion for 87 new
operations in 33 countries
INTERNA TIONA L
DEVELOPMENT
ASSOCIATION (IDA):
1.The International Development Association
was established in September 24, 1960.
2. 165 Members is the part of the World Bank
that helps the world’s poorest countries.
3. IDA is responsible for providing long-term,
interest-free loans to the world's 80
poorest countries, 39 of which are in
Africa.
4. Fiscal 2004 commitments: $9 billion for
158 new operations in 62 countries
MULTILATERAL
INVESTMENT AND
GUARENTEE AGENCY
(MIGA):
1. The Multilateral Investment
Guarantee Agency was established
in 1988.
2. It had165 members.
3. Cumulative guarantees issued:
$13.5 billion (Amounts include funds
leveraged through the Cooperative
Underwriting Program).
4. Fiscal 2004 guarantees issued: $1.1
billion
INTERNA TIONA L
FINANCE
CORPORA TION
(IFC):
1.The International Finance
Corporation was established in
1956.
2. It had 176 members.
3. Committed portfolio: $23.5 billion
(includes $5.5 billion in syndicated
loans).
4. It promotes sustainable private
sector investment in developing
countries as a way to reduce
poverty and improve people's lives.
5. Fiscal 2004 commitments: $4.8
billion for 217 projects in 65
countries.
INTERNATIONAL
CENTRE FOR THE
SETTLEMENT OF
INVESTMENT DISPUTES
(ICSID):
1. The International Centre for
Settlement of Investment Disputes
was established in 1966.
2. It had 143 members.
3. Total cases registered: 159
4. It provides facilities for the
conciliation and arbitration of
investment disputes between
member countries and individual
investors.
5. Fiscal 2004 cases registered: 30
INTERNATIONAL
MONETARY FUND (IMF):
The International Monetary Fund was created
in 1944, with a goal to stabilize exchange rates and
supervise the reconstruction of the world’s
international payment system.
1 Promote international monetary cooperation.
2Shorten the duration and lessen the degree of
disequilibrium in the international balances of
payments of members.
3Facilitate the expansion and balanced growth of
international trade.
4Promote Exchange stability and maintain
orderly exchange arrangements among members.
5Assist in establishing a multilateral system of
payments.
The IMF provides financial assistanceto members
to help them to correct balance of payments
problems in a manner that promotes sustained
growth.
INTERNATIONAL
MONETARY FUND
Formation- Adopted: July 22, 1944
(67 years ago) Entered intoforce:
December 27, 1945
Type- International Economic
Organization
Headquarters- Washington, D.C.
Membership- 1nation (founding);188
nations (to date)
Official languages- English, French,and
Spanish
Managing Director- Christine Lagarde
Main organ- Board ofGovernors
Website- www.imf.org
BENEFITS TO INDIA BY
IMF:
Freedom to Rupee
Membership of the World bank
Importance of India in internationalfield
Technical advice and training
EUROPEAN BANK FOR
RECONSTRUCTION AND DEVELOPMENT
(EBRD):
EBRD provide project financing for banks, industries and businesses, both new ventures and
investments in existing companies. We also work with publicly owned companies.
Founded in 1991
1 Financial institution investing in public and private sectors
2 Multinational shareholding: 60 countries, EIB and EU
3 Operates in 27 countries of Central and Eastern Europe and the former Soviet Union)
4 Institution with broader mandate: foster transition to market economy
ROLE OF EUROPEAN BANKS FOR
RECONSTRUCTION AND DEVELOPMENT:
Structuring the financing of municipal infrastructure, equipment and services
Promote commercialization and corporatization of services
Development of regulatory structures
Promotion of appropriate private sectorinvolvement
Environmental improvement
Facilitate EU grant andcommercial loan co-financing
EBRD assists in developing municipal creditworthiness and improving budgetary
and fiscal practice
EBRD mobilizes financing for municipal advisory services
Support in project appraisal and transaction structuring
Provide most appropriate financing structure from a wide array of financial instruments
Mobilization of co-financing and syndication
ASIAN DEVELOPMENT
BANK (ADB):
The Asian Development Bank (ADB) is a
regional development bank established to facilitate
economic development of countries inAsia.
ITS STATED GOALS:
1-Promoting economic growth
2.Reducing poverty
3.Developing human resources
4.Improving the status ofwomen
5.Protecting the environment
The Bank's operations cover a wide spectrum of
activities and have been classified according to the
following sectors:
1.Agriculture and natural resources
2.Transport and communications
3.Energy
4.Industry and non-fuelminerals
5.Finance
6.Socialinfrastructure
Asian Development Bank
Motto- Fighting poverty inAsia and
the Pacific
Formation- 22 August 1966
Type- Regional organization
Legal status- Treaty
Purpose/focus- Crediting
Headquarters- Mandaluyong City,
Metro Manila, Philippines
Region served- Asia-Pacific
Membership- 67 countries
President- Haruhiko Kuroda
Main organ- Board ofDirectors
Staff- 2,500+
Website- http://www.adb.org
ROLE OF ASIAN DEVELOPMENT
BANK:
1 Provides loans and equity investments to its developing
member countries
2 Provides technical assistance for the planning and
execution of development projects and programs and for
advisory services
3 Promotes and facilitates investment of public and private
capital for development
4 Assists in coordinating development policies and plans of
its DMCs
AFRICAN
DEVELOPMENT BANK
(AFDB):
Established in 1964 with a mandate to
promote economic and social
development in Africa, the African
Development Bank is a regional
multilateral development finance
institution comprising the African
Development Bank, the African
Development Fund, and the Nigeria Trust
Fund. The opacity of its operations andits
emphasis on major regionalinfrastructure
projects have generated concern among
African and international civilsociety.
AFRICAN DEVELOPMENT
BANK
Formation August 4, 1963
Type International
organization
Legal status Treaty
Purpose/focus Regional
development
Membership 78 countries
President Donald Kaberuk
Main organ Board of
Executive
Directors
Website http://www.afdb
ROLE OF AFRICAN
DEVELOPMENT BANK:
The main role of the African Development Bank is to help the
development of countries in Africa by making loans and equity
investments in various projects and programs.
African Development Bank also provides technical assistance on
development projects.
African Development Bank helps in coordinating the development
projects of the various countries involved.
INTER-AMERICAN
DEVELOPMENT BANK
(IDB):
The Inter-American Development Bankwas
founded in 1959. The IDB has 48 member
countries, including 26 Latin American and
Caribbean borrowing members. The bank
supports efforts by
Latin America and the Caribbean countries to
reduce Poverty and Inequality and is the largest
source of development financing in this area,
besides loans, grants are provided as well
as technical assistance and do research. The
IDB has a strong commitment to achieve
measurable results, increased integrity,
transparency and accountability.
Inter-American Development Bank
Type International
organization
Headquarters Washington,
DC
Membership 48 countries
Official language
s
English,
Spanish,
French,
Portuguese
President Luis Alberto M
Main organ Board of
Governors
Staff About 2,000
Website iadb.org
ROLE OF INTER-AMERICAN
DEVELOPMENT BANK:
1 Using its lending operations, regional initiatives, research and knowledge dissemination
activities, institutes, and programs, the IDB helps to foster sustainable economic and
social development in Latin America and the Caribbean.
2 Through its financing, the Bank prioritizes poverty reduction and social equity,
environmentally sustainable growth, modernization of the state, and regional
integration.
3 IDB has the following mainareas of action:
Reducing poverty and social inequalities;
Addressing the needs of small and vulnerable countries;
Fostering development through the private sector;
Addressing climate change, renewable energy and environmental sustainability; and
Promoting regional cooperation andintegration.