International financial institutions

An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders. The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions (created by two countries) exist and are technically IFIs. The best known IFIs were established after World War II to assist in the reconstruction of Europe and provide mechanisms for international cooperation in managing the global financial system.

Types Multilateral Development Banks A Multilateral Development Bank (MDB) is a development bank, created by a group of countries, that provides financing, technical assistance and professional advice to enhance development. An MDB has many members, including developed donor countries and developing borrower countries. MDBs finance projects through long-term loans at market rates, very-long-term loans below market rates (also known as credits), and grants. Additionally, MDBs often have a geographic concentration area for their development objectives. With this geographic and thematic focus, funding for a variety of ventures – often resource-intense infrastructure projects – is provided. Since MDBs have a shareholding structure and are backed by member countries, they tend to profit from favorable loan conditions compared to other banks and can therefore take more risks in their investment strategy.Humphrey, C., & Brugger. (n.d.). The Role of Multilateral Development Banks in Financing the Sustainable Development Goals [Policy Paper]. https://ethz.ch/content/dam/ethz/special-interest/gess/nadel-dam/publications/NADEL_Policy_Paper_MDB_EN_web.pdf This aids their development-driven cause.

Since the 2020s, in the context of the G20, the World Bank-IMF Annual Meetings and other International Summits, MDBs have committed to multiple shared reform objectives. This MDBs Reform process aims to integrate MDBs in terms of operational practices, objectives, financial metrics and governance structures, enabling them to work as a system in development projects, to mobilize additional capital and achieve credit rating stability. The Capital Adequacy Framework (CAF) reform has been one of the main fields of MDB reform, aiming the enhance financing capacity and harmonize financial metrics among MDBs.

The following are usually classified as the main MDBs: World Bank European Investment Bank (EIB) Islamic Development Bank (IsDB) Asian Development Bank (ADB) European Bank for Reconstruction and Development (EBRD) Inter-American Development Bank Group (IDB, IADB) African Development Bank (AfDB) New Development Bank (NDB) Asian Infrastructure Investment Bank (AIIB) North American Development Bank (Nadbank)

There are also several multilateral financial institutions (MFIs). MFIs are similar to MDBs but they are sometimes separated since they have more limited memberships and often focus on financing certain types of projects. European Stability Mechanism (ESF) European Investment Fund (EIF) International Finance Facility for Immunisation (IFFIm) International Fund for Agricultural Development (IFAD) Arab Petroleum Investments Corporation (APICORP) OPEC Fund for International Development

Bretton Woods institutions

The best-known IFIs were established after World War II to assist in the reconstruction of Europe and provide mechanisms for international cooperation in managing the global financial system. They include the World Bank, the IMF, and the International Finance Corporation. Today the largest IFI in the world is the European Investment Bank which lent 61 billion euros to global projects in 2011. Founded Name Notes HQ 1944 IMF International Monetary Fund Specialised agency of the UN Washington, D.C. 1944 IBRD International Bank for Reconstruction and Development World Bank Group, Specialised agency of the UN Washington, D.C. 1956 IFC International Finance Corporation World Bank Group Washington, D.C. 1960 IDA International Development Association World Bank GroupWashington, D.C. 1966 ICSID, International Centre for Settlement of Investment Disputes World Bank Group Washington, D.C.1988 MIGA Multilateral Investment Guarantee Agency World Bank Group Washington, D.C.1995 GATT General Agreement on Tariffs and Trade, basis for the creation of World Trade Organization (WTO) in 1995The GATT is not an organisation. The WTO is not a United Nations agency Geneva for the WTO

Regional development banks There are also several regional multilateral development banks. Their membership typically includes only borrowing nations. The banks lend to their members, borrowing from the international capital markets. Because there is effectively shared responsibility for repayment, the banks can often borrow more cheaply than could any one member nation. These banks include: Regional development banks consist of several regional institutions that have functions similar to the World Bank group's activities, but with particular focus on a specific region. Some banks consist of the regional countries plus the major donor countries. The best-known of these regional banks cover regions that roughly correspond to United Nations regional groupings, including the Inter-American Development Bank, the Asian Development Bank; the Islamic Development Bank; the African Development Bank; the Central American Bank for Economic Integration; the European Investment Bank; and the European Bank for Reconstruction and Development. Founded Name Notes HQ 1958 CEB Council of Europe Development Bank Coordinated organisation granting loans to member states in Europe Paris 1958 EIB European Investment Bank Created by European Union member states to provide long-term finance, mainly in the EU Luxembourg 1959 IDB Interamerican Development Bank Works in the Americas, but primarily for development in Latin America and the Caribbean Washington, D.C.1960 CABEI Central American Bank for Economic Integration Central AmericaTegucigalpa1963 IBEC International Bank for Economic Co-operation Development bank of the former Comecon Moscow1964 AfDB African Development Bank AfricaAbidjan1966 ADB Asian Development Bank AsiaManila1967 EADB East African Development Bank Development bank of the East African Community Kampala1969 CDB Caribbean Development Bank Development bank of the Caribbean Barbados1970CAF Development Bank of Latin America Latin America Caracas1973 IsDB Islamic Development Bank Group 56 countries in Asia, Africa, Europe, and Latin AmericaJeddah1973 BADEA Arab Bank for Economic Development in Africa www.badea.org Khartoum1973 BOAD West African Development Bank Development bank of the West African Economic and Monetary Union Lomé1970IIB International Investment Bank Consists of 4 member countries Moscow1975 BDEAC Development Bank of Central African States Development bank of Economic Community of Central African States Brazzaville1976 NIB Nordic Investment Bank Lending operations in its 8 member countries and emerging markets on all continents. Helsinki 1985 TDB Trade and Development Bank Development bank of the Common Market for Eastern and Southern Africa Bujumbura1991EBRD European Bank for Reconstruction and Development London1997BSTDB Black Sea Trade and Development Bank 11 member countries, corresponding to the Organization of the Black Sea Economic CooperationThessaloniki 2005 ETDB Economic Cooperation Organization Trade and Development Bank Development bank of the Economic Cooperation Organization Istanbul2006 EDB Eurasian Development BankInternational financial institution promoting economic growth in the member states and Eurasian integration through investment. Almaty

Other regional financial institutions Financial institutions of neighboring countries established themselves internationally to pursue and finance activities in areas of mutual interest; most of them are central banks, followed by development and investment banks. The table below lists some of them in chronological order of when they were founded or listed as functioning as a legal entity. Some institutions were conceived and started working informally 2 decades before their legal inception (e.g. the South East Asian Central Banks Centre) Founded Name Website Notes HQ1930 BIS Bank for International Settlementshttp://www.bis.org||The bank of all central banks, 60 membersBasel, Switzerland1959 BCEAO Central Bank of West African States Central bank of the West African Economic and Monetary Union Lomé1965 AACB African Association of Central Banks http://www.aacb.org/||Consists of 40 African central banksDakar, Senegal1972 BEAC Bank of Central African States Central bank of CEMAC Yaoundé1974 ACU Asian Clearing Unionhttps://www.asianclearingunion.org/||9 Central Banks1982 SEACEN South East Asian Central Banks Research and Training Centrehttp://www.seacen.org|| 19 Asian central banksKuala Lumpur, Malaysia1998 ECB European Central Bankhttp://www.ecb.int||Central bank of the eurozone Frankfurt, Germany

Bilateral development banks and agencies A bilateral development bank is a financial institution set up by one individual country to finance development projects in a developing country and its emerging market, hence the term bilateral, as opposed to multilateral. Examples include: the Netherlands Development Finance Company FMO, headquarters in The Hague; one of the largest bilateral development banks worldwide. the DEG German Investment Corporation or Deutsche Investitions- und Entwicklungsgesellschaft, headquartered in Cologne, Germany. the French Development Agency, and Caisse des dépôts, founded 1816, both headquartered in Paris, France. the British International Investment, is a development finance institution owned by the UK Government headquartered in London.

International financial institutions

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