New Development Bank (NDB)

New Development Bank Latest News

Algeria has officially joined the BRICS-backed New Development Bank (NDB), marking a major expansion of the bank’s influence into North Africa.

About New Development Bank

• The New Development Bank (NDB), formerly known as the BRICS Development Bank, is a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China, and South Africa). 
• Objective: NDB aims to mobilize resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies and developing countries.
• The idea of setting up NDB was first conceived in 2012 during the BRICS Summit in New Delhi, India.
• The agreement for establishing the NDB was signed during the BRICS Summit held in Fortaleza on July 15, 2014, and the Bank started operations on July 21, 2015.
• The bank is headquartered in Shanghai, China, with regional offices in South Africa and Brazil.
• Membership in NDB is open to any member of the United Nations. 
• Capital: The NDB has an initial authorized capital of USD 100 billion and an initial subscribed capital of USD 50 billion, which was equally distributed among the five founding members. 
• Unlike in the case of the World Bank or ADB, each member in the NDB has an equal voting power.
• Governance Structure:
  • The Bank is governed by a Board of Governors made up of the finance ministers of the five BRICS countries, and a Board of Directors.
  • Both the presidency and vice-presidency of the NDB are rotated among BRICS founding members: Brazil, Russia, India, China, and South Africa.

New Development Bank FAQs

Q1. When did the New Development Bank officially start its operations?

Ans. July 21, 2015

Q2. Where is the headquarters of the New Development Bank located?

Ans. Shanghai, China

Q3. How is voting power distributed among the founding members of the NDB?

Ans. Equally among all members.

Source: HT