Banking Awareness 2017 Inward Elementary Linguistic Communication – Lesson 17

Dear Gr8 Ambitionists, inward our previous Banking Awareness 2017 Lesson 16, nosotros accept learnt nearly the Currency. In today’s lesson, nosotros shall acquire nearly diverse Banking & Financial Organizations. Happy Reading 🙂

Banking Awareness 2017 : Banking & Financial Organizations

MDB (Multilateral Development Bank)

MDB are institutions that render fiscal back upward in addition to fiscal propose for economical in addition to social evolution activities inward developing countries.

The next are unremarkably classified every bit the primary MDBs

  1. World Bank 
  2. International Fund for Agricultural evolution (IFAD)
  3. European Investment Bank (EIB) 
  4. Islamic Development Bank (IsDB) 
  5. Asian Development Bank (ADB) 
  6. European Bank for Reconstruction in addition to Development (EBRD) 
  7. CAF – Development Bank of Latin America (CAF) 
  8. Inter – American evolution Bank grouping (IDB, IADB) 
  9. African Development Bank (AFDB)
  10. Asian Infrastructure Investment Bank (AIIB)
  11. National Development Bank (NDB)

IMF (International Monetary Fund)

  • Formation : 27 Dec 1945
  • Headquarter : Washington D.C.
  • Head : Christine Lagarde (MD)
  • Members : 188 countries 

International Monetary Fund is working to foster global monetary cooperation, secure fiscal stability, facilitate iternational trade, promote high job in addition to sustainable economical growth in addition to cut back poverty around the world.

All the members of International Monetary Fund are every bit good International Bank for Reconstruction in addition to Development (IBRD) fellow member in addition to vice-versa.

Voting Shares :

  1. India – 2.6% 
  2. China – 6%
  3. USA – 16.5%. 

Functions :

  1. Merchant of Currencies : International Monetary Fund primary portion is to buy in addition to sell the fellow member countries currencies. 
  2. Helpful for the Debtor countries. 
  3. To promote telephone substitution stability. 
  4. Temporary assistance for the devalued currency. 
  5. To avoid telephone substitution depreciation. 
  6. Declaration of scare currency: If the necessitate of whatsoever detail province currency increases & its stock with the fund falls below 75% of its quota the International Monetary Fund tin hand the sack declare it scare.

Publications :

  1. World economical outlook 
  2. Global Financial Stability Report 
  3. IMF Fiscal Monitor

World Bank

  • Formation : July 1944
  • Headquarter : Washington DC
  • Head : Dr. Jim Yong Kim (from 23rd March 2012)
  • Chief Economist : Kaushik Basu (Since September 5, 2012)
  • The earth banking concern is an international fiscal institutions that provides loans to developing countries for uppercase programs. It comprises ii institutions the International Bank for Reconstruction & Development (IBRD) in addition to the International Development Association (IDA). 
  • World Bank was created at the 1944, Bretton Wood Conference along with 3 other institutions, including the IMF. The president of the earth banking concern is traditionally an American.

Members :

  • 188 countries
    • 188 countries (IBRD) 
    • 173 countries (IDA) 

Each fellow member province of IBRD should every bit good live on a fellow member of the International Monetary Fund in addition to solely members of IBRD are allowed to bring together other establishment inside the banking concern (such every bit IDA). IDA is called soft Loan window of the world. 

Voting Shares : 
  1. India – 2.91% (7th largest share) 
  2. China – 4.42% (3rd largest share) 
  3. USA – 15.85% (Largest share). 


  1. World Bank provides diverse technical services to the fellow member countries. 
  2. Bank tin hand the sack grant loans to a fellow member province upward to 20% of its portion inward the paid upward capital. 
  3. Generally, Bank grants loans for a detail projection duly submitted to the banking concern past times the fellow member country. 
  4. The debtor national has to repay either inward reserve currencies or inward the currency inward which the loan was sanctioned. 
  5. Bank every bit good provides loan to person investors belonging to fellow member countries on its ain guarantee, but for this loan person investors accept to seek prior permission from those countries where this sum volition live on collected.
  6. Settlement of disputes with fellow member countries. 
  7. For long term evolution projects, earth Bank provides loan for the stream 5-20 years. 

Major Contribution of World Bank inward Bharat

Bharat was outset to acquire loan assistance from World Bank during 1995-1996. World Bank provided loan to Indian Government in addition to extended loan for evolution of its fiscal institutions which include IDBI (Industrial Development Bank of India) & ICICI.
  1. Doing business 
  2. Global Economic Prospects 
  3. Global Financial Development Report 
  4. Climate alter & Poverty 
  5. International Debt Statistics 
  6. World Development Report 

NDB (New Development Bank)  

The NDB, formerly referred to every bit the BRICS Development Bank, is a multilateral evolution

bank operated past times the BRICS states (Brazil, Russia, India, China, South Africa) as an choice to the existing American & European dominated World Bank in addition to IMF. The finish of the banking concern is to mobilize resources for infrastructure in addition to sustainable evolution projects inward BRICS in addition to other emerging economic science in addition to developing countries All BRICS members accept equal shareholding of 20% each. 

  • July 2014 (Treaty Signed) 
  • July 2015 (Treaty inward Force) 
Headquarter : Shanghai, China 
President : K.V. Kamath (For outset year) 
Sanghai was selected every bit the headquarter after contest from New Delhi in addition to Johannesburg. 
Note : First loan to live on issued inward Apr 2016 in addition to volition live on given inward Chinese currency (Renminbi). 

ADB (Asian  Development Bank)

  • Head business office : Manila (Philippines)
  • President : Takehiko Nakao  
  • Member : 67 
  • Motto : Fighting poverty inward Asia in addition to Pacific 

The Asian Development Bank (ADB) is a regional evolution Bank established inward xix Dec 1966. It focuses on reducing poverty through inclusive economical growth in addition to sustainable environmental growth inward Asia through loans & grants. 

ADB mainly focuses 5 operational areas.

  1. Education 
  2. Infrastructure 
  3. Finance Sector Development 
  4. Environment change 
  5. Regional Co-operation in addition to integration. 

In ADB Japan holds largest portion 15.7%, USA holds 15.6%, mainland People’s Republic of China 6.5% in addition to Bharat holds 6.4% portion in addition to voting mightiness of Bharat inward ADB is 5.386% 

The 12 members of board of Directors are elected past times board of governors in addition to 8 out of 12 members are elected past times members countries from inside Asia Pacific part in addition to iv other are elected past times fellow member countries from exterior regions.

AIIB (Asian Infrastructure Investment Bank)

Headquarter : Beijing, China

President : Jin Liquin (First)
Vice-President : Dr. D.J. Pandian

It is an international fiscal institution, which focuses on construction inward Asia Pacific Region.
This banking concern was an maiden of Government of mainland People’s Republic of China in addition to supported past times 37 regional in addition to xx non-regional members. Total 57 founding members accept signed the understanding for this bank.
It is considered a competitive banking concern for earth dominating fiscal powers similar World Bank, ADB & IMF.

Voting Shares :

  • China : 26.06%, 
  • India : 7.5%, 
  • Russia : 5.92% 

Authorized Capital : 100 Billion U.S. of A. Dolor.

Capital Shares
  • China : 29.78 billion dollars 
  • India : 8.36 billion dollars 
  • Russia : 6.54 billion dollars 

Capital Share %

  • China : 30.34%, 
  • India : 8.52%, 
  • Russia : 6.66% 

WTO (World Trade Organization)

Formation : 1 Jan 1995
Headquarter : Centre William Roppard, Geneva, Switzerland

Members : 164 (Since 31 Dec 2015) 
(Afghanistan is the 164th member)
WTO is an intergovernmental organization which regulates international trade. WTO signed past times 123 nations on fifteen Apr 1994 replacing the General Agreement on Tariffs in addition to Trade (GATT), which commenced inward 1948. WTO deals with regulation of merchandise betwixt participating countries past times providing a framework for negotiating merchandise agreements in addition to a dispute resolution procedure aimed at enforcing participants adherence to WTO agreements, which are signed past times representatives of fellow member governments & ratified past times their parliaments.
Note : Bharat Membership : 1 Jan 1995 (GATT-8 July 1948)
Functions of WTO
  1. To implement rules & provisions related to merchandise policy in addition to to aid fellow member countries to arrive at upward one’s hear strategies of merchandise in addition to tariff. 
  2. To render facilities for implementation, direction in addition to functioning of multilateral & bilateral agreements of the World Trade in addition to Resolving Trade disputes. 
  3. To assist international organisations such every bit International Monetary Fund in addition to IBRD for establishing coherence inward Universal Economic Policy determination. 
    1. WTO 1st Ministerial Conference : 9-13 Dec 1996 (Singapore)
    2. WTO tenth Ministerial Conference : 15-19 Dec 2015 (Nairobi, Kenya) [In tenth Conference : The completion of Liberia’s in addition to Transitional Islamic State of Afghanistan accession to the WTO is an agenda] 

Publications : World Trade Report, International merchandise statistics.

NHB (National Housing Bank) 

  • Headquarter : New Delhi
  • Head : Sh. Sriram Kalyanraman. 
  • Set upward on nine July, 1988 nether the NHB deed 1987. 
  • It is a wholly owned subsidiary of Reserve Bank of India. 
  • It is an apex fiscal establishment for housing. 
  • Objective : To operate every bit a principal means to promote housing finance institutions both at local & regional levels. 
  • NHB registers, regulates in addition to supervises Housing Finance Company (HFCs), keeps surveillance through on site & off site mechanisms in addition to co-ordinates with other regulators. 
  • NHB has formulated a system called, Energy Efficient Housing Scheme (EEHS), 2011 for lending towards loose energy efficient housing units/buildings. 
  • Golden Jubilee Rural Housing Finance Scheme (GJRHFS) has been conceptualized to address the job of rural housing through improved access to housing credit. 

That’s all for forthwith friends. In our side past times side Banking Awareness lesson, nosotros shall acquire nearly few more Banking & Financial Institutes. Happy Reading 🙂

  • Read Lesson 2 from Here
  • Read Lesson 3 from Here
  • Read Lesson iv from Here
  • Read Lesson 5 from Here
  • Read Lesson six from Here
  • Read Lesson vii from Here
  • Read Lesson 8 from Here
  • Read Lesson nine from Here
  • Read Lesson 10 from Here 
  • Read Lesson eleven from Here
  • Read Lesson 12 from Here  
  • Read Lesson thirteen from Here 
  • Read Lesson fourteen from Here
  • Read Lesson fifteen from Here   
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