49317076 ppt on international financial institutions

Constance L. Danner

WHAT IS IT????

• IFI refers to financial institutions that have been established by more than one country.

• The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions.

EXAMPLES:• World Bank

• IMF

• Multilateral development banks

• UN agencies.

World Bank• Established July 1, 1944

o WB Group consist of o International Bank of Reconstruction &

Development

o International Development Agency

o International Financial Corporation

o Multilateral Investment Guarantee Agency

o International Center for Settlement of

International Dispute

–

Norwegian Delegation,Bretton Woods,

July 1944

WORLD BANK

• 185 COUNTRY

• The five largest shareholders France, Germany, Japan, UK and US .

• Low-interest loans

• Interest - free credits .

• Grants to developing countries

• Financial & Technical Assistance.

IMF

• Since 1944

• India in 1991

• Financing to Members

• Advisor & Promoter

• 25 % Gold & rest in currency

• Statistics and Research

THE ROLE OF IMF

• Increasing international monetary co-operation.

• Promoting the growth of trade.

• Promoting exchange rate stability.

• Establishing a system of multilateral payments member

countries.

• Building reserve base.

• Funding facilities.

Multilateral development banks

• 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.

Examples:

• World Bank

• African Development Bank

• Asian Development Bank

• European Bank for Reconstruction and

Development

• Inter-American Development Bank

Borrowing Institutions:

• Corporación Andina de Fomento (CAF)

• Caribbean Development Bank (CDB)

• Central American Bank for Economic Integration(CABEI)

• East African Development Bank(EADB)

• West African Development Bank(BOAD)

• Black Sea Trade and Development Bank (BSTDB)

Types of IFIS:

Bretton Woods institutions

Regional development banks

Bilateral development banks

Other regional financial

institutions

Bretton Woods Institutions

• After World War II to assist in the reconstruction of Europe and provide mechanisms for international cooperation in managing the global financial system

Regional Development Banks

• Inter-American Development Bank (which works in the Americas, but primarily for development in Latin America and the Caribbean)

• Asian Development Bank

• African Development Bank

• European Bank

Bilateral Development Banks

• Bilateral development banks are financial institutions set up by individual countries to finance development projects in developing countries and emerging markets.

• Examples :

• Netherlands Development Finance Company.

• German Development Bank .

Regional Financial Institutions

• European Investment Bank

( An institution established by the members of the European Union.)

Black Sea Development Bank

International Investment Bank

(established by the countries of the former Soviet Union and Eastern Europe)

Islamic Development Bank

Nordic Investment Bank.

•Think overseas

… Rushi