BRICS bank starts its operations from Shanghai, China
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.
Chinese Finance Minister Lou Jiwei, Shanghai Mayor Yang Xiong and the bank’s first President K V Kamath from India attended the opening ceremony.
About New Development Bank (NDB)
Agreement for establishing NDB was signed during the 6th BRICS Summit being held in Fortaleza, Brazil in April, 2014. It was formally launched at the 7th BRICS summit held in Ufa, Russia in July 2015.
Purpose: To fund infrastructure projects in the emerging economies. It is seen as an alternative institute to west dominated World Bank and the International Monetary Fund (IMF).
Capital: It will have initial capital of US 50 billion dollars and will be raised to US 100 billion dollars within the next couple of years.
Each members role: They will have an equal say in the bank’s management, regardless of GDP size and contribute an equal share 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.
Month: Current Affairs - July, 2015