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International Financial Institutions

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International Financial Institutions

International Financial Institutions

shape Introduction

International Financial Institutions (IFIs) are the Financial Institutions that has been established (or chartered) by more than one country, and hence are subjects of International Law. The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions (created by two countries) exist and are technically IFIs. This is an important topic for General Awareness section of different competitive exams.

shape Organizations

Prominent International Financial Institutions are created by group of countries called as multilateral development bank MDB, it provides financing and professional advising for the purpose of development. MDBs have large memberships including both developed donor countries and developing borrower countries.

Below is the detailed list of International Financial Institutions- MDB Headquarters & Functions.

Abbreviation AFDB
Motto Building today, a better Africa tomorrow
Formed 1964
Member Countries 78 Countries (India is also a Member)
Head Quarters Abidjan, Ivory Coast
President Akinwumi Adesina (2015 – Present)
Functions It is established to contribute to the economic development and social progress of African countries. The primary function is to provide loans and equity investments for the socio-economic advancement, Technical assistance for development projects, and assists in organizing the development policies.

Abbreviation ADB
Motto Fighting poverty in Asia and the Pacific
Formed 1966
Member Countries 67 Countries (India is also a Member)
Head Quarters Mandaluyong, Metro Manila, Philippines
President Takehiko Nakao (April 28, 2013 – Present)
Functions This organisation works on reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. This is carried out through investments in the form of loans, grants and information sharing.

Abbreviation AIIB
Formed December 2015
Member Countries 50 countries (India is also a member)
Head Quarters Beijing, China
President Jin Liqun (January 2016 – Present)
Functions Its function is to support the building of infrastructure in the Asia-Pacific region. The bank has 50 member states (all “Founding Members”) and was proposed as an initiative by the government of China.

Abbreviation EBRD
Formed 1991
Member Countries 67 countries (India is also a member)
Head Quarters London
President Sir Suma Chakrabarti (2012– present)
Functions It offers project financing for banks, industries and businesses, for new ventures or existing companies. It works with publicly owned companies to support their privatization, as advocated by the WTO since the 1980 and in the improvement of municipal services.

Abbreviation EIB
Formed 1958
Member Countries 28 member states of the EU (India is not a member)
Head Quarters Luxembourg
President Werner Hoyer (January 2012 – Present)
Functions It is a nonprofit long-term lending institution. It supports for small and medium sized enterprises to attain environmental sustainability and in development of Trans-European Networks of transport and energy and for many others purposes.

Abbreviation IMF
Formed 27 December 1945
Member Countries 189 countries (India is also a member)
Head Quarters Washington, DC
President Christine Lagarde (5 July 2011 – present)
Functions It works for global growth and economic stability by providing policy, advice and financing to members, by working with developing nations to help them achieve macroeconomic stability and reduce poverty. The IMF provides alternate sources of financing.

Abbreviation IDB
Motto Together We Build a Better Future
Formed 1975
Member Countries 57 countries (India is not a member)
Head Quarters Jeddah, Saudi Arabia
President Ahmad Mohamed Ali Al Madani (1975 – Present)
Functions This is a multilateral development financing institution which helps in the development of member states. The basic condition for membership is that the prospective member country should be a member of the Organization of Islamic Cooperation.

Abbreviation WBG
Formed 1945
Member Countries 189 countries (India is also a member)
Head Quarters Washington, DC
President Jim Yong Kim (1 July 2012 – present)
Functions The World Bank focuses on developing countries, in fields such as human development, agriculture and rural development, environmental protection, infrastructure, large industrial construction projects, and governance.