International Organisations (Financial Institution)

List of financial institutions

International Organisation
By   @pratibha,   2 years ago

International financial institution including World Bank Group and other multilateral and regional development banks. These are development bank with global objectives to achieve Sustainable Development Goal.

List of financial institutions

1.World Bank (World Bank Group or WBG)

  • International Bank for Reconstruction and Development (IBRD)
  • International Development Association (IDA)
  • International Finance Corporation (IFC)
  • Multilateral Investment Guarantee Agency (MIGA)
  • International Center for Settlement of Investment Disputes (ICSID)

2.International Monetary Fund (IMF)

3.Bank for International Settlement (BIS)

4.Asian Development Bank (ADB)

5.Asian Infrastructure Investment Bank (AIIB)

World Bank (World Bank Group or WBG)

  • International financial institution that provide loans to countries for capital programs.
  • creation- 1944 in Bretton Wood Conference, along with IMF.
  • IBRD and International Development Association, collectively known as World Bank.
  • Aim
  1. End extreme poverty- reducing share of global population that lives in extreme poverty to 3% by 2030.
  2. Promote shared prosperity - by increasing the income of the poorest 40% of people in every countary.
  3. Provide Sustainable Development .
  • WB engaged with Middle - income countries (MIC represent more than 60% of IBRD portfolio) both as client and shareholders.
  • all decision of WB will be guided to promotion of
  1. foreign investment,
  2. international trade,
  3. facilitation of capital investment.
  • together with the World Health Organisation, WB administers- International Health Partnership (IHP+), it improves the health of citizens of developing countries.
  • WB initiative - Clean Air Initiative (CIA) to advance inovative ways to improve air qualities in cities. This is done through partnership in selected regions of the world by sharing knowledge and experiences.
  • Reports
  1. Commodity market outlooks,
  2. Doing business report,
  3. Global economic prospects,
  4. Global financial development report,
  5. Poverty and shared prosperity.

  • What is World Bank Group ?

Its a family of five international organisations that makes leveraged loans to developing countries. All five institutions have their own country membership, governing boards & articles of agreement. All institutions work as one to serve to partner countries.

1.(a). International Bank for Reconstruction and Development (IBRD)

  • The largest development bank provide financial products, policy advice to help contries headquartered at Washington D.C.
  • provide loans, guarantees, risk management products, advisory service to middle- income countries.
  • partnership with low income countries (MIC) providing funds to improve transportation & infrastructure, education, domestic policy,environmental consciousness, access to food, portable water and improved sanitation.
  • funding of IBRD - member contribute capitals & also obtain funds by borrowing on international capital markets by issuing bonds.

 1.(b). International Development Association (IDA)

  • part of the World Bank, helps the worlds poorest countries.
  • it aims to reduce poverty by providing loans and grants for programs that encourages economic growth,reduces inequalities.
  • associated with IBRD and form World Bank, IDA and IBRD both shares sme staff and headquarter and evaluate projects.
  • IDA lending money on concessional terms that is on zero or low interest.
  • IDA a multilateral institution,supporting wide range of activities- economic growth, equality, job creation, better living standards etc.

 1.(c).International Finance Corporation (IFC)

  • established in 1956 as the private sector arm of World Bank, headquarter- Washington D.C.
  • largest global development institution providing- investment, asset management, services to private sector in developing countries.
  • it works to advance economic development by investing in commercial projects for reduction of poverty and promoting development.
  • provide accessible and competitive market, supporting businesses & other private sector entities and creating jobs.  
  • Goals -increase sustainable agricultural opportunities, improve healthcare and education.

 1.(d) Multilateral Investment Guarantee Agency (MIGA)

  • member of WBG, headquartered at Washington D.C. 
  • established to provide investment insurance facility to promote investment in developing countries to help in economic growth, reduce povertyand promote investment.
  • promote foreign investment by offering political risk insurance and credit enhancement guarantees . It protect direct investment against political and non commercial risk.
  • it governed by its member state, but also has own executive leadership to carryout works.

 1.(e) International Center for Settlement of Investment Disputes (ICSID)

  • an international arbitration institution involved in international investment dispute settlement.
  •  it is a part of and funded by WBG, headquartered in Washington is an independent multilateral specialized institution promote international investment.
  • it mitigate non commercial risk by a treaty drafted by IBRD's executive directors and member nations.
  • Publication- ICSID Review Foreign Investment Journal. 

International Monetary Fund (IMF)

  • It conceived at UN conference in Bretton Woods in July 1944.
  • It promote global economic growth and financial stability, to encourage international trade, and reduce poverty.
  • Based in Washington D.C.
  • Currently 189 member countries each ha representation on the IMF's executive board in proportion to its financial importance, so that the most powerful countries in the global economy have the most voting power.
  • Its mission described by IMF website- " to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world."
  • Activities- primary method for achieving their goals are
  1. monitoring,
  2. capacity building
  3. lending
  • lending- loan to countries experience economic distress in order to prevent financial crisis. it does not lend for special projects.
  • SDR (special drawing rights) created by IMF to suppliments its member countries.
  • Surveillance- IMF collect data on- national economies, international trade , provide regularly updated economic forecasts at national and international levels.
  • Capacity building- it provide - technical assistance, policy advice to member countries and training in data collection & analysis which feed into IMF project of monitoring global economies
  • Reports
  1. World economic outlook.
  2. Global financial stability report.

Bank for International Settlement( BIS)

  • International financial institution, owned by Central Bank.
  • Location- Basel, Switzerland and representation offices in Hong Kong & Mexico, establishment- 1930.
  • It promote global monetary and financial cooperation.
  • Provide banking service , only for central bank and other international organisation.
  • It works by meetings, programs through the process of - facilitating interaction of international groups seeking global financial stability.
  • Mission-
  • facilitate collaboration among central banks
  • supports other organisation for promoting financial stability
  • carry out research and analysis monetary and financial stability
  • act as trustee or agent in regard to global financial operations.
  • It maintain abundant equity capital and reserves to reduce the risk of bank runs
  • BIS ensures liquidity for central Bank.

Asian Development Bank (ADB)

  • Establishment- 1966, headquarter- Ortigas Center located in the city of Mandaluyong , Metro Manila Philippines.
  • ADB is an official UN observer.
  • Aim- promotion of social and economic development, reduction in poverty, environmentally sustainable growth and regional integration.
  • It assist its members by providing loans grants equity investment and technical assistance.
  • focus on -
  1. Education
  2. environment sustainability
  3. Finance sector development
  4. private sector lending
  5. Regional cooperation and integration
  • Financing, it offers-
  1. hard loans- primarily to middle income countries, on commercial term.
  2. soft loans- to poorer countries at low rate interests.
  • Reports-
  1. ADB Annual Report
  2. Building Bridges; lessons from problem solving in Vietnam
  3. Public Financial Management System.

Asian Infrastructure Investment Bank (AIIB)

  • A multilateral development Bank, with aim -to improve social and economic outcomes
  • Headquartered in- Beijing, China.
  • It provide finance to infrastructure development and regional connectivity project in Asia Pacific region.
  • Primarily focused on- investment in- energy, power generation, transport, rural infrastructure, environmental protection.
  • Also focused on projects that links countries and cross border infrastructure projects for roads rail energy telecommunication & maritime routes.

Author : Pratibha Gaurav
Pratibha Gaurav


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