The New Development Bank (NDB) : The BRICS bank opens for business in China
The New Development Bank (NDB) floated by the BRICS nations
to step up infrastructure funding in the emerging economies formally started
its operations at its headquarters.
Chinese Finance Minister Lou Jiwei, Shanghai Mayor Yang
Xiong and the bank's President K V Kamath attended the opening ceremony held in
a hotel in Shanghai.
Mr.Kamath will be the bank's President for the first five
The NDB will supplement the existing international financial
system in a healthy way and explore innovations in governance models.
BRICS economies - Brazil, Russia, India, China and South
Africa - launched the multi-billion dollar development bank at the 7th BRICS
summit held in the Russian city of Ufa on July 8 amid efforts to finance
infrastructure projects, mainly in member countries.
The NDB will have initial capital of USD 50 billion, which
will be expanded to USD 100 billion within the next couple of years.
Each BRICS member will contribute an equal share in
establishing a startup capital.
The NDB was conceived as a counterbalance to Western-led
financial institutions like the World Bank and the IMF by providing funding for
infrastructure and development projects in BRICS countries.
Each nation will have an equal say in the bank's management,
regardless of GDP size, according its officials.
The NDB is also backed by the China-floated USD 50 billion
Asia Infrastructure Investment Bank (AIIB) in which India and 56 other
countries have joined.
The World Bank welcomed the opening of NDB.
Presently, Mr K V Kamath is the president of the New Development Bank and
the founding members are - Brazil, Russia, India, China, and South Africa.