New Development Bank
- Also referred as BRICS Development Bank
- It is a multilateral development bank operated by BRICS states.
- The bank’s primary focus of lending will be infrastructure projects
- The bank will have starting capital of $50 billion, with capital increased to $100 billion over time
- Brazil, Russia, India, China and South Africa will initially contribute $10 billion each to bring the total to $50 billion
- Unlike the World Bank, which assigns votes based on capital shares, here each participant country will be assigned one vote, and no country will have veto power
- Countries apart from the BRICS countries will also be members- the bank will have some countries from ‘the south’ on a rotational basis, on the board of the bank, and they will be allowed to vote
- The bank will allow new members to join but the share of BRICS countries cannot drop below 55%
- HQ : Shanghai, China
- Formed in 2015
- The first regional office of the NDB will be opened in Johannesburg, South Africa
- K V Kamath is its President
- What will NDB do?
- the Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments.
- shall cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the Bank