A new $100 billion BRICS bank dedicated to the emerging BRICS countries has formally started its operations in China’s commercial hub Shanghai. The “New Development Bank (NDB)”, backed by the so-called emerging BRICS nations Brazil, Russia, India, China and South Africa, has been viewed as a challenge to Washington-based institutions. Kamath, 67, will be the bank’s President for the first five years.
About New Development Bank or BRICS Bank
- The NDB will have initial capital of USD 50 billion, which will be expanded to USD 100 billion within the next couple of years.
- Each BRICS member will contribute an equal share in establishing a startup capital.
- The NDB is also backed by the China-floated USD 50 billion Asia Infrastructure Investment Bank (AIIB) in which India and 56 other countries have joined.
- The NDB was conceived as a counterbalance to Western-led financial institutions like the World Bank and the IMF.
- The opening comes two weeks after a BRICS summit hosted by Russian President Vladimir Putin.
- The regionally-focused Asian Development Bank also said it would “look forward” to working with the NDB.
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