ADB,NDB,AIIB & Other Financial
Organizations
Asian Development Bank
• ADB is a regional development bank established on 19th December
1966.
• It has 68 members( 49 from within Asia).
• It is headquartered in Manila, Philippines.
• Japan is the largest shareholder in ADB followed by the USA.
• It is dedicated to reducing poverty in Asia and the Pacific through
inclusive economic growth, environmentally sustainable growth, and
regional integration.
• ADB operations are designed to support the three complementary
agendas of inclusive economic growth, environmentally sustainable
growth and regional integration.
• ADB’s main objective is to reduce poverty in the Asia Pacific region. Loans
from the Asian Development Fund are made on highly concessional terms
and almost exclusively to the poorest borrowing countries.
• Despite the region’s many successes, it remains home to a large share of
the world’s poor: 330 million living on less than $1.90 a day and 1.2 billion
on less than $3.10 a day.
• Recently, the Asian Development Bank (ADB) has provided a $1.5 billion
loan to India to fund India’s immediate response to the Covid-19
pandemic.
• The loan has been provided under ADB’s Covid-19 Active Response and
Expenditure Support (CARES) Program.
• Asian Development Bank (ADB) has listed its 10 year Masala bonds worth
₹850 crore on the Global Securities Market of India International Exchange
(India INX).
• ADB’s masala bonds are dual listed on both Luxembourg exchange and
India INX.
• This is the first time a foreign issuer and a supranational is doing a primary
listing with India INX.
• It will promote the GIFT IFSC as a global hub for fund raising by Indian and
Foreign issuers.
New Development Bank
• It is a multilateral development bank operated by the BRICS states (Brazil,
Russia, India, China and South Africa).
• Established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil.
• The bank is headquartered in Shanghai, China.
• The bank is set up to foster greater financial and development
cooperation among the five emerging markets.
• New Development Bank has equal voting rights for all countries.
• NDB fast-tracked financial assistance of about $5 billion to BRICS countries
including Emergency Assistance of $1 billion to India to combat Covid-19
pandemic.
Asian Infrastructure Investment Bank (AIIB)
• It is headquartered in Beijing.
• It began operations in January 2016.
• The Bank has now 100 approved members worldwide.
• The first AIIB Board of Governors meeting was held in Beijing, China in
2016.
• The second was held in Jeju, Korea in 2017 and the third was held in
Mumbai, India in 2018.
European Bank for Reconstruction and Development (EBRD)
• Founded in 1991, The European Bank for Reconstruction and
Development (EBRD) is an international financial institution.
• It was founded to support countries of the former Eastern Bloc in the
process of establishing their private sectors.
• EBRD, as a multilateral development investment bank, uses investment as
a tool in building market economies.
• EBRD is owned by the European Union (EU), European Investment Bank
(EIB) and 69 other countries.
• Headquarters: London
• India has become the 69th shareholder of the European Bank for
Reconstruction and Development (EBRD), paving the way for more joint
investment with Indian companies across the EBRD's regions.
European Investment Bank (EIB)
• The European Investment Bank (EIB) is a non-profit long-term lending
institution of European Union (EU). It is established under treaty of Rome
in 1958.
• Headquarters: Luxembourg
• It provides three types services:
– Lending (about 90% of its financial commitment);
– Blending (allowing clients to combine EIB financing with
additional investment);
– Advising and technical assistance (maximising value of money).
European Investment Bank (EIB) aims to
• boost Europe's potential in terms of jobs & growth
• support action to mitigate climate change
• promote EU policies outside the EU
Islamic Development Bank
• In 1974, the Organization of Islamic Countries (OIC) established the
first Islamic bank called the Islamic Development Bank or IDB.
• The basic business model of this bank was to provide financial
assistance and support on profit sharing basis.
• After such banks were opened at various places such as the first
private commercial bank in Dubai (1975), the Bahrain Islamic Bank
(1979) and the Faisal Islamic bank of Sudan (1977).
• Headquarters: Jeddah, Saudi Arabia
• 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.
African Development Bank (AfDB)
– Established in 1964, the African Development Bank (AfDB) is a
multilateral development finance institution established to contribute
to the economic development and social progress of African countries.
– The AfDB comprises three entities:
1. The African Development Bank,
2. The African Development Fund and
3. The Nigeria Trust Fund.
– Headquarter: Abidjan, Cote d'Ivoire
• India joined the African Development Fund in 1982, and became a
member of the Bank in 1983. India is a non-regional member of the Bank.
• The 52nd Annual Meetings of the African Development bank was held in
Gandhinagar, Gujarat from 22 to 26 May 2017.
• This was the first time that the Annual Meetings of AfDB was held.
1. Asian Development Bank was established in ?
(a) 1968 (b) 1966 (c) 1975 (d) 1960
2. Which of the following is the newest member of the ADB?
(a) Armenia (b) Turkmenistan
(c)Luxembourg (d) Niue
3. Where is the headquarters of the ADB?
(a) Manila (b) Kathmandu (c) Jakarta (d) Dhaka
4. Which of the following country has highest voting power in the
ADB?
(a) USA (b) India (c) China (d) Japan
5. Consider the following statements with respect to New
Development Bank (NDB)
1. It was established by the BRIC countries, before the induction of
South Africa in 2010.
2. NDB is a member of G-20 forum along with World Bank and
International Monetary Fund.
Which of the statement(s) given above is/are correct?
a. 1 only b. 2 only
c. Both 1 and 2 d. Neither 1 nor 2
6. Where is the headquarters of BRICS New Development Bank
situated?
A) Beijing, China B) Moscow, Russia
C) Cape Town, South Africa D) Shanghai, China
7. Where will the first regional office of the BRICS New
Development Bank be set up?
A) New Delhi, India B) Johannesburg, South Africa
C) Beijing, China D) Fortaleza, Brazil
8. For which of the following member countries, did the BRICS
New Development Bank sanctioned its first loan?
A) China B) India
C) South Africa D) Brazil
9. Asian Infrastructure Investment Bank (AIIB)’s headquartered in
_____
A. Manila B. Beijing C. New Delhi D. Sanghai
10. The African development bank (afdb) was set up in____?
A. 1956 B.1968 C.1964 D. 1970
