Opening of BRICS bank in China for business
Finally BRICS bank has been opened in China. The New Development Bank or NDB of BRICS Nations has been established in Shanghai as its headquarter, on 21st July, 2015, Tuesday.
The Finance Minister of China -Lon Jiwei, Shanghai Mayor Yang Xiong as well K.V.Kamath -the President of Bank were present in the inaugural ceremony. The event took place in one of the posh hotels of Shanghai. K.V.Kamath, aged 67, is the President of the Bank for long five years.
The Finance Minister said at a seminar after the opening ceremony that the NDB is tl improve the existing system of International Finance and it will also seek ways of innovations in the system of the Governing body.
BRICS stands for Brazil, Russia, India, China and South Africa. BRICS launched this development bank of multi-billion dollar during the 7th BRICS Summit organized in Russian city Ufa on 8th July. The objective of establishing this development bank was to provide finance in infrastructure projects of its member countries.
The initial capital of the NDB is $50 billion which will be extended upto $100 billion within a few years. Each BRICS member country will contribute equal share of capital in establishing NDB.
Basically NDB was formed to provide financial help to member countries as the World Bank and IMF do for western countries. Each member country should have equal right to participate in the management of the bank irrespective of GDP size as said by the Officials of the bank.
The NDB is also assisted by the Asia Infrastructure Investment Bank (AIIB) which is actually built by China-floated $50 billion. India and 56 other countries are members of this AIIB. The President of World Bank, Jim Yong Kim congratulated the opening of NDB and it’s member countries.
According to Kim, the World Bank would always work closely with the NDB and multilateral institutions and share knowledge of each other. He also said that this collaboration could eliminate poverty by 2030 and reduce inequalities.