Leaders from Brazil, Russia, India, China and South Africa (BRICS) today launched the BRICS Development Bank, the first of its kind from emerging countries. Here are 5 facts that you would like to know about the BRICS Development Bank.
Initial capital and reserves pool
Leaders of the BRICS launched the bank with an initial capital of $50 billion. The countries have also instituted a $100 billion currency reserves pool to assist in times of distress.
India to look out for new President
An Indian will be nominated as the first President of the newly formed BRICS Development Bank. The Indian government may now have to look for a suitable person to take charge of this nascent bank.
A bank from the emerging world economies
The move was the first step in ensuring that the international financial system is not dominated by the Western countries. It will give the developing countries access to resource and help in times of crisis.
Headquarters in Shanghai
The Chinese city of Shanghai will be the headquarters of the bank. According to news reports the reasons for the same is that the city offers better infrastructure, opportunities to capture private funding, and is home to more investors than the competitors.
Lending to commence in 2016
The bank is expected to start lending in 2016. China, which has one of the world's largest foreign exchange reserves, will contribute the bulk of the contingency currency pool.