Banking System

World Bank Group-

The world Bank Group constitutes the following institutions:

1.IBRD- International Bank for Reconstruction and Development

2.IDA- International Development Association

3.IFC- International Finance Commission

4.MIGA- Multilateral Investment Guarantee Agency

5.ICSID- International Centre for Settlement of Investment Disputes

1.IBRD- It was established in Dec 1945 with IMF, IMF & IBRD are called Bretton Wood Twins.Its headquarter is at Washington D.C

Now,188 nation are members of IBRD.

Its objective is to assist member nations in the economic re-contruction and development of their territories.

In 2010, voting power at the world bank were received to increase the voice of developing countries, notably China.

The countries with most voting power are now the US(15.85%),Japan(6.84%),China(4.42%),Germany(4.00%),UK(3.75%),France(3.75%),India(2.91%),Russia(2.77%),Saudi Arabia(2.77%) and Italy(2.64%).

2.IDA-It is an association institution of IBRD and is known as the SOFT LOAN WINDOW of WORLD BANK.

It was established on sept 24,1960.

Its provides loans to its member countries and no interest is charged on these long term loans.

As an affiliate of IBRD, its director, officers and staff are those of the IBRD.

3.IFC- Establishef in 1955,the IFC become a UN specialized agency in 1957.

It provides loans to private industries of developing nations without any government guarantee and also promote the additional capital investment in these countries.