New Development Bank (NDB): In News
Iran will soon join the New Development Bank, the development lender established by the BRICS group of nations, central bank governor Abdolnaser Hemmati said in a state media report published recently ahead of a BRICS finance meeting in India.
- The New Development Bank (NDB), formerly known as the BRICS Development Bank, is a multilateral development bank established by Brazil, Russia, India, China, and South Africa (BRICS).
- NDB aims to mobilize resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies and developing countries.
- The agreement for establishing the NDB was signed during the BRICS Summit held in Fortaleza, Brazil, on July 15, 2014.
- The bank became operational in 2015 and is headquartered in Shanghai, China, with a regional office in Johannesburg and additional offices later opened in São Paulo and Moscow.
- Membership in NDB is open to any member of the United Nations.
- NDB’s key areas of operation include clean energy and energy efficiency; transport infrastructure; water and sanitation; environmental protection; social infrastructure; and digital infrastructure.
- Its founding capital was set at USD 100 billion, with initial subscribed capital of USD 50 billion divided equally among the five founding members.
- 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.
- Unlike in the case of the World Bank or Asian Development Bank (ADB), each member in the NDB has an equal voting power.
