Brics bank

BRICS BANK

2What BRICS stand for……………..

Established on 16th June 2009. BRICS stands for Brazil,Russia,India,China and South Africa. BRICS is international political organization of leading emerging economies.

Objectives: To achieve regional developments. To remove trade barriers. Economic developments. Optimum use of resources.

3

4

5

6

7

8

9Key Statistics:

25% of the world’s land coverage. 40% of the world’s population. Combined GDP of $18.486 trillion i.e. more than 25% of worlds GDP. Embrace global capitalism. China and India-Suppliers of manufactured goods and services. Brazil,Russia,South Africa- Suppliers of Raw Materials.

10 NEW DEVELOPMENT BANK

Formed on July 2014 and came into force in July 2015. Earlier known as “BRICS Development Bank”.

Headquartered in Shanghai. Comprises of 2.8billion people. Unlike the world bank which assigns vote based on capital share, In the NDB each

participant country will be assigned one vote. In NDB no countries will have “veto power.” 1st president will be from India. Chairman of Board of Directors will be from Brazil and Chairman of Board of Governors will

be from Russia.

11NEED OF NDB….

Rising strength of BRICS countries. To challenge the US $ as the global currency. South-South economic cooperation has expanded in recent years. Long standing dissatisfaction with Brettonwood institutions has also posed BRICS towards

developing country alternative to global developmental finance. Domination of west countries over the WORLD BANK & IMF.

12FINANCIAL STRUCTURE

US $ 50 billion ( US $ 10 billion from each country) as initial capital, this capital base to be used for financial infrastructure & sustainable development projects in brics countries.

US $ 100 billion Contingency Reserve Arrangement(CRA) for liquidity protection of brics countries during BOP problem. ( 41% china, 18% india,Russia,brazil and 5% south Africa).

At the time of expansion the 51% share of the bank will be held by BRICS countries only. Developing or less developing countries can also apply for financial assistance.

13 IMPLICATION OF NDB It may challenge WORL BANK & IMF overs matters such asi)Funding for basic services.ii)Emergency Assistance.iii)Policy Landing.iv)Funding to Conflict Affected States.

World Bank’s own estimates points to $1trillion infrastructure investment gap in developing countries which can filled by these institutions.

It may dwarf World Bank’s Loans.

14BIBLOGRAPHY

www.Wikipedia.com http://

www.huffingtonpost.com/parag-khanna/new-bricsbank_b_5600027.html?ir=India&adsSiteOverride=in

http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/07/17/what-the-new-bank-of-brics-is-all-about/

http://www.hindustantimes.com/business/kv-kamath-non-executive-chairman-of-icici-is-now-brics-bank-head/story-4LtSgiRQzGAMkfgvlUqtSO.html