INSTITUTE OF BUSINESS ADMINISTRATION

JAHANGIRNAGAR UNIVERSITY

Assignment On:
Different International Financial Organizations

Submitted To:
Md. Alamgir Hossen
Assistant Professor and Course Instructor
[FIN 409] International Financial Management

Submitted By:
Tabassum Tasnim Sinthy
Batch : 27
ID:1729

Date of Submission:
January 27, 2022
Different International Financial Organizations

1. International Monetary Fund (IMF)

The International Monetary Fund (IMF) is an International Financial Institution that
promotes global economic growth and financial stability, encourages international trade,
and reduces poverty which Formed in 1944, started on 27 December 1945. The headquarter
of International Monetary Fund (IMF) in Washington, D.C., consisting of 190 countries.
The aim of the IMF The International Monetary Fund aims to reducing global poverty,
encouraging international trade, and promoting financial stability and economic growth.

Functions of International Monetary Fund (IMF)

IMF works to foster global growth and economic stability by providing policy advice and
financing the members by working with developing countries to help them achieve
macroeconomic stability and reduce poverty. The rationale for this is that private
international capital markets function imperfectly and many countries have limited access
to financial markets. Such market imperfections, together with balance-of-payments
financing, provide the justification for official financing, without which many countries
could only correct large external payment imbalances through measures with adverse
economic consequences. The IMF provides alternate sources of financing such as the
Poverty Reduction and Growth Facility. Upon the founding of the IMF, its three primary
functions were: to oversee the fixed exchange rate arrangements between countries, thus
helping national governments manage their exchange rates and allowing these
governments to prioritize economic growth, and to provide short-term capital to aid the
balance of payments. The IMF is mandated to oversee the international monetary and
financial system and monitor the economic and financial policies of its member countries.
This activity is known as surveillance and facilitates international co-operation. Since the
demise of the Bretton Woods system of fixed exchange rates in the early 1970s,
surveillance has evolved largely by way of changes in procedures rather than through the
adoption of new obligations. The responsibilities changed from those of guardians to those
of overseers of members' policies.

2. World Bank
The World Bank is an international financial institution that provides loans and grants to
the governments of low-and middle-income countries for the purpose of pursuing capital
projects.
It comprises two institutions: The International Bank for Reconstruction and Development
(IBRD), and the International Development Association (IDA). The World Bank is a
component of the World Bank Group. The headquarter of World Bank in Washington,
D.C., United States and the made up of 189-member countries.

Aim
The Bank's aim is to "bridge the economic divide between poor and rich countries."

Functions of the World Bank

 1. It helps the war devastated countries by granting them loans for reconstruction.
2. Thus, they provide extensive experience and the financial resources of the bank help
the poor countries increase their economic growth, reducing poverty and a better
standard of living.
3. It helps the underdeveloped countries by granting development loans.
4. So, it also provides loans to various governments for irrigation, agriculture, water
supply, health, education, etc.
5. It promotes foreign investments to other organizations by guaranteeing the loans.
6. Also, the world bank provides economic, monetary, and technical advice to the member
countries for any of their projects.

Thus, it encourages the development of of-industries in underdeveloped countries by

introducing the various economic reforms.

3. World Trade Organization (WTO)

The World Trade Organization (WTO) is an intergovernmental organization that regulates
and facilitates international trade between nations. Governments use the organization to
establish, revise, and enforce the rules that govern international trade and created in 1995.
The headquarter of World Trade Organization (WTO) in Centre William Rappard, Geneva,
Switzerland and the made up of 164-member countries

Aim
The aim of the World Trade Organization (WTO) is to ensure that trade flows as smoothly
and predictably as possible and reduction of tariffs and other barriers to trade.

The main functions of WTO are discussed below:

1. To implement rules and provisions related to trade policy review mechanism.
2. To provide a platform to member countries to decide future strategies related to
trade and tariff.
3. To provide facilities for implementation, administration and operation of
multilateral and bilateral agreements of the world trade.
4. To administer the rules and processes related to dispute settlement.
5. To ensure the optimum use of world resources.
6. To assist international organizations such as, IMF and IBRD for establishing
coherence in Universal Economic Policy determination.
4. Asian Development Bank (ADB)
The Asian Development Bank (ADB) is a regional development bank established on 19
December 1966, which is headquartered in the Ortigas Center located in the city of
Mandaluyong, Metro Manila, Philippines and ADB now has 68 members.

Aim
The ADB defines itself as a social development organization that is dedicated to reducing
poverty in Asia and the Pacific through inclusive economic growth, environmentally
sustainable growth, and regional integration. This is carried out through investments – in
the form of loans, grants and information sharing – in infrastructure, health care services,
 financial and public administration systems, helping nations prepare for the impact of
climate change or better manage their natural resources, as well as other areas.

Functions of the Asian Development Bank

1. Economic and Social Advancement:
This bank has a membership program under which there are various benefits available for
the members’ countries which include providing loan and investment at a concessional
rate. One of the functions of the ADB is to provide loans and equity investments for the
economic and social upgrade of developing member countries.

2. Technical Assistance:
One of the functions of the Asian Development Bank is to provide technical assistance for
the preparation and implementation of development projects and advisory services.

3. Investment Promotion:
Firstly, the Asian Development Bank provides a lot of services to the member countries in
the form of investments. At the same time, they also provide some specific sort of
investment facilities for development purposes.

4. Support in Policies and Plans:

Plans and policies play an important role in any country. There are various domestic
agencies providing help to the authorities while framing various policies. But there is
a need for some international agencies at the same time for the same function. One of
the main functions of the ADB is to provide help to the member countries in framing
policies and plans at the international level.

5. Islamic Development Bank

The Islamic Development Bank (Arabic: ‫ ) البنك اإلسالمي للتنمية‬is a multilateral development
finance institution that is focused on Islamic finance located in Jeddah, Saudi Arabia. There
are 57 shareholding member states with the largest single shareholder being Saudi Arabia.
The aim of the Bank is to foster the economic development and social progress of member
countries and Muslim communities individually as well as jointly in accordance with the
principles of Shari'ah i.e., Islamic Law.

Functions of Islamic Development Bank

1. The functions of the Bank are to participate in equity capital and grant loans for
productive projects and enterprises.
2. Providing financial assistance to member countries in other forms for economic and
social development.
3. The Bank is also required to establish and operate special funds for specific purposes
including a fund for assistance to Muslim communities in non-member countries, in
addition to setting up trust funds.
 4. The Bank is authorized to accept deposits and to mobilize financial resources through
Shari'ah compatible modes.
5. It is also charged with the responsibility of assisting in the promotion of foreign trade
especially in capital goods, among member countries;
6. Providing technical assistance to member countries;
7. Extending training facilities for personnel engaged in development activities in Muslim
countries to conform to the Shari'ah.
8. Other functions of this bank Research and training programs in Islamic economics and
banking; Awqaf investment and financing; Special assistance and scholarships for
member countries and Muslim communities in non-member countries; Direct equity
investment in Islamic financial institutions.

6. New Development Bank (NDB)

The New Development Bank (NDB), formerly referred to as the BRICS Development
Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia,
India, China and South Africa). According to the Agreement on the NDB, "the Bank shall
support public or private projects through loans, guarantees, equity participation and other
financial instruments." Moreover, the NDB "shall cooperate with international
organizations and other financial entities, and provide technical assistance for projects to
be supported by the Bank which headquarter in Shanghai, China.

Aim
The aim of the New Development Bank (NDB) to be the catalyst in the financial services
industry by creating superior shareholder value and contributing to the national
development through the empowerment of individuals with innovative financial solutions
delivered by an inspired and dedicated team committed to excellence.

Functions of NDB
The broad objectives and functions of NDB are:
1. Fostering development of member countries
2. Supporting economic growth
3. Promoting competitiveness and facilitating job creation
4. Building a knowledge sharing platform among developing countries

7. Asian Infrastructure Investment Bank (AIIB)

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank that
aims to improve economic and social outcomes in Asia. The bank currently has 105
members, including 16 prospective members from around the world and its headquarters
in Beijing, China.

Aim
The AIIB aims to close the substantial financial gap between the demand for sustainable
infrastructure in Asia and the available resources. In so doing, it seeks to improve economic
development and living, environmental and social standards in these countries. The AIIB
has committed itself to focusing in particular on sustainable and green investments in order
 to help countries in Asia transition to eco-friendly technology, particularly for energy
production.

8. Bank for International Settlements (BIS)

The Bank for International Settlements (BIS) is an international financial institution owned
by central banks that "fosters international monetary and financial cooperation and serves
as a bank for central banks". The BIS carries out its work through its meetings, programs
and through the Basel Process – hosting international groups pursuing global financial
stability and facilitating their interaction. It also provides banking services, but only to
central banks and other international organizations. It is based in Basel, Switzerland and
the total 63 members. The stated aim of the BIS is to serve central banks in their pursuit of
monetary and financial stability, to foster international cooperation in those areas and to
act as a bank for central banks.

Functions of Bank for International Settlements (BIS)

1. fostering discussion and facilitating collaboration among central banks;
2. supporting dialogue with other authorities that are responsible for promoting financial
stability;
3. carrying out research and policy analysis on issues of relevance for monetary and
financial stability;
4. acting as a prime counterparty for central banks in their financial transactions;
5. serving as an agent or trustee in connection with international financial operations.