|NDB Established:||15 July 2014.|
|NDB Members:||5 Members.|
|NDB Headquarters:||Shanghai, China.|
|NDB President:||Marcos Prado Troyjo.|
The New Development Bank (NDB) or BRICS Bank is a multilateral development bank established by the BRICS countries. It provides the loan to developing countries in a very low-interest rate for infrastructure projects.
When there are other international financial institutions such as IMF, and the World Bank, which are available, then why NDB was founded, is an obvious question. The answer is other international financial institutions are dominated by the western countries, and developing countries were facing lots of unnecessary issues to get a loan from these institutions that is why the emerging countries group BRICS thought to establish a new bank where western countries can not interfere unnecessarily, and developing countries can get loan easily in low-interest rates.
During the sixth BRICS summit in Fortaleza, Brazil in the year 2014, the leaders of the BRICS countries signed an agreement for establishing the New Development Bank, and the bank started working in 2015.
In the Fortaleza declaration, the leaders stressed that the New Development Bank will strengthen cooperation among BRICS, and will supplement the efforts of multilateral and regional financial institutions for global development, thus contributing to collective commitments for achieving the goal of strong, suitable, and growth.
The initial authorized capital of the bank was $100 billion, and the initial subscribed capital was $50 billion shared equally by the member states, and according to the agreement on the NDB, the voting power of each member is equal.
All the BRICS (Brazil, Russia, India, China, South-Africa) countries are the members of the New Development Bank, and for expansion of membership of NDB, the bank's articles of agreement specify that all the members of the United Nations could be the members of the New Development Bank however the share of the BRICS countries can never be less than 55% of the voting power.
The main objectives of the NDB are to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging countries. The NDB also cooperates with other international financial institutions like the World Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, etc.
The headquarters of the New Development Bank is situated in Shanghai, China, and the first regional office is located in Johannesburg, South Africa.
The idea of establishing a BRICS bank was initiated by the former prime minister of India, Dr. Manmohan Singh. Now India is an active member of the New Development Bank and also one of the founding members of NDB with equal voting rights according to the agreement.