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INTERNATIONAL FINANCIAL INSTITUTIONS

International financial institutions (IFIs) are financial institutions that have been
established (or chartered) by more than one country, and hence are subjects of
international law. Their owners or shareholders are generally national governments,
although other international institutions and other organizations occasionally figure as
shareholders. The most prominent IFIs are creations of multiple nations, although some
bilateral financial institutions (created by two countries) exist and are technically IFIs.
Many of these are multilateral development banks (MDB).
1. Multilateral development bank
A multilateral development bank (MDB) is an institution, created by a group of
countries that provides financing and professional advising for the purpose of
development. MDBs have large memberships including both developed donor countries
and developing borrower countries. MDBs finance projects in the form of long-term
loans at market rates, very-long-term loans (also known as credits) below market
rates, and through grants.
The following are usually classified as the main MDBs:
 World Bank
 European Investment Bank(EIB)
 Asian Development Bank (ADB)
 European Bank for Reconstruction and Development (EBRD)
 Inter-American Development Bank Group (IDB, IADB)

2. Bretton Woods institutions
The best-known IFIs were established after World War II to assist in the reconstruction
of Europe and provide mechanisms for international cooperation in managing
the global financial system . They include the World Bank, the IMF, and
the International Finance Corporation. Today the largest IFI in the world is the
European Investment Bank which leant 61 billion euros to global projects in 2011.
 IMF International Monetary Fund
 IBRD International Bank for Reconstruction and Development
 IFC International Finance Corporation
 IDA International Development Association
 ICSID, International Centre for Settlement of Investment Disputes
 MIGA Multilateral Investment Guarantee Agency

3. Regional Development Bank
The regional development banks consist of several regional institutions that have
functions similar to the World Bank group's activities, but with particular focus on a
specific region. Shareholders usually consist of the regional countries plus the major
donor countries. The best-known of these regional banks cover regions that roughly
correspond to United Nations regional groupings, including the Inter-American
Development Bank, the Asian Development Bank; the African Development Bank;
the Central American Bank for Economic Integration; and the European Bank for
Reconstruction and Development.




4. Bilateral development banks and agencies
A bilateral development bank is a financial institution set up by one individual country
to finance development projects in a developing country and its emerging market,
hence the term bilateral, as opposed to multilateral.

5. Other regional financial institutions
Financial institutions of neighboring countries established themselves internationally
to pursue and finance activities in areas of mutual interest; most of them arecentral
banks, followed by development and investment banks.






































World Bank

World Bank is United Nations international financial institution that provides financial
and technical assistance to developing countries around the world. World Bank was
established in 1944 at Bretton Woods Conference. It provides low-interest loans,
interest-free credits, and grants for basic needs of people in developing nations and
invests in their capital programs. These support a wide array of investments in such
areas as education, health, public administration, infrastructure, financial and private
sector development, agriculture, and environmental and natural resource
management.
World Bank provides or facilitates financing through co-financing with government,
other multilateral institutions, commercial banks, export credit agencies, private
sector investors, and trust fund partnerships with bilateral and multilateral donors.

President: Dr. Jim Yong Kim

HEADQUARTERS
The World Bank
1818 H Street, NW
USA
Washington, DC 20433

Country Office: India
Sunita Malhotra
New Delhi
smalhotra@worldbank.org

The institutions of the World Bank Group are:
1. International Bank for Reconstruction and Development (IBRD)
2. International Development Association (IDA)
3. International Finance Corporation (IFC)
4. Multilateral Investment Guarantee Agency (MIGA)
5. International Centre for Settlement of Investment Disputes (ICSID).

IBRD
The International Bank for Reconstruction and Development (IBRD) aims to reduce
poverty in middle-income countries and creditworthy poorer countries by promoting
sustainable development through loans, guarantees, risk management products, and
analytical and advisory services. Established in 1944 as the original institution of the
World Bank Group, IBRD is structured like a cooperative that is owned and operated
for the benefit of its 188 member countries.
IBRD raises most of its funds on the world's financial markets and has become one of
the most established borrowers since issuing its first bond in 1947. The income that
IBRD has generated over the years has allowed it to fund development activities and
to ensure its financial strength, which enables it to borrow at low cost and offer
clients good borrowing terms.
 supports long-term human and social development needs that private creditors
do not finance;
 preserves borrowers' financial strength by providing support in crisis periods,
which is when poor people are most adversely affected;
 uses the leverage of financing to promote key policy and institutional reforms
(such as safety net or anticorruption reforms);
 creates a favorable investment climate in order to catalyze the provision of
private capital;
 provides financial support (in the form of grants made available from the
IBRD's net income) in areas that are critical to the well-being of poor people in
all countries.
India was the 4
th
largest borrower from IBRD in the World Bank Fiscal Year (FY) 2012
with respect to the Share of Total Loans Outstanding with IBRD and total borrowings
of $ 47.9 Billion.
IDA
IDA is one of the largest sources of assistance for the world’s 82 poorest countries, 40
of which are in Africa. It is the single largest source of donor funds for basic social
services in these countries. IDA-financed operations deliver positive change for 2.5
billion people, the majority of whom survive on less than $2 a day.
IDA lends money on concessional terms. This means that IDA charges little or no
interest and repayments are stretched over 25 to 40 years, including a 5- to 10-year
grace period. IDA also provides grants to countries at risk of debt distress.
Since its inception, IDA has supported activities in 108 countries. Annual commitments
have increased steadily and averaged about $16 billion over the last three years, with
about 50 percent of that going to Africa. For the fiscal year ending on June 30, 2013,
IDA commitments reached $16.3 billion spread over 160 new operations.
IFC
IFC was established to stimulate private investment in the Bank's borrowing countries.
IFC has three business–
1. Investment Services- IFC provides a broad suite of financial products and services—
including loans, equity, trade finance, structured finance, and syndications—
designed to promote development in emerging economies.
2. Advisory Services- IFC offers advice, problem solving, and training to companies,
industries, and governments, all aimed at helping private sector enterprises
overcome obstacles to growth.
3. IFC Asset Management- IFC mobilizes and manages third-party capital funds for
investment in developing and frontier markets.
IFC coordinates its activities with the other institutions of the World Bank Group but is
legally and financially independent. India is IFC member since July 20, 1956.
IFC Executive Vice President and CEO - Jin-Yong Cai
Headquarters:
International Finance Corporation
2121 Pennsylvania Avenue, NW
Washington, DC 20433 USA

MIGA
MIGA is a member of the World Bank Group and has mission to promote foreign direct
investment (FDI) into developing countries. MIGA focuses on insuring investments in
following areas-
 Countries eligible for assistance from the International Development
Association (the world’s poorest countries)
 Conflict-affected environments
 Complex deals in infrastructure and extractive industries, especially those
involving project finance and environmental and social considerations
 Middle Income Countries where we can have impact
MIGA’s guarantees protect investments against-non-commercial risks and can help
investors obtain access to funding sources with improved financial terms and
conditions. MIGA was established in 1988 and has issued more than $28 billion in
political risk insurance for projects in a wide variety of sectors, covering all regions of
the world.
Executive Vice President- Keiko Honda

Headquarters
Multilateral Investment Guarantee Agency
1818 H Street, NW
Washington DC
20433 USA

International Monetary Fund