International Financial Institutions

Topics: International Monetary Fund, United Nations, World Bank Pages: 3 (516 words) Published: June 12, 2013
What are Financial institutions?
International financial institutions (IFIs) are financial institutions that have been established (or chartered) by more than one country, and hence are subjects of international law. Their owners or shareholders are generally national governments, although other international institutions and other organisations 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. ( Types of Financial Institutions

1. Multilateral development bank (MDB)
A multilateral development bank (MDB) is an institution, created by a group of countries, that provides financing and professional advising for the purpose of development. MDBs have large memberships including both developed donor countries and developing borrower countries. MDBs finance projects in the form of long-term loans at market rates, very-long-term loans (also known as credits) below market rates, and through grants. The following are usually classified as the main MDBs:

* World Bank
* European Investment Bank
* African Development Bank
* Asian Development Bank
* European Bank for Reconstruction and Development
* Inter-American Development Bank Group

2. 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 leant 61 billion euros to global projects in 2011. 3. Regional development banks

The 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. Shareholders...
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