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 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:

There are also several "sub-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:

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.

Bretton Woods institutions
Main article: Bretton Woods system

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.

FoundedNamewww AddressNotesHQ
1944IMF International Monetary Fundhttp://www.imf.org Specialised agency of the UNWashington, DC
1944IBRD International Bank for Reconstruction and Developmenthttp://www.worldbank.orgWorld Bank Group, Specialised agency of the UNWashington, DC
1956IFC International Finance Corporationhttp://www.ifc.orgWorld Bank GroupWashington, DC
1960IDA International Development Associationhttp://www.worldbank.org/idaWorld Bank GroupWashington, DC
1966ICSID, International Centre for Settlement of Investment Disputeshttp://icsid.worldbank.org/ICSID/Index.jspWorld Bank GroupWashington, DC
1988MIGA Multilateral Investment Guarantee Agencyhttp://www.miga.orgWorld Bank GroupWashington, DC
1995GATT General Agreement on Tariffs and Trade, basis for the creation of World Trade Organization (WTO) in 1995http://www.wto.org/english/docs_e/legal_e/06-gatt_e.htm http://wto.org The GATT is not an organisation. The WTO is not a United Nations agencyGeneva for the WTO

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 usually 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 African Development Bank; the Central American Bank for Economic Integration; and the European Bank for Reconstruction and Development. The Islamic Development Bank is among the leading multilateral development banks. IsDB is the only multilateral development bank after the World Bank that is global in terms of its membership. 56 member countries of IsDB are spread over Asia, Africa, Europe and Latin America.

FoundedNamewww AddressNotesHQ
1959IDB Interamerican Development Bankhttp://www.IADB.orgWorks in the Americas, but primarily for development in Latin America and the CaribbeanWashington
1960CABEI Central American Bank for Economic Integrationhttp://www.cabei.orgCentral AmericaTegucigalpa
1964AfDB African Development Bankhttp://www.afdb.orgAfricaAbidjan
1973IsDB Islamic Development Bank Grouphttp://www.isdb.org56 countries in Asia, Africa, Europe, and Latin AmericaJeddah
1966ADB Asian Development Bankhttp://www.adb.orgAsiaManila
1970CAF Development Bank of Latin Americahttp://www.caf.comLatin AmericaCaracas
29/5/91EBRD European Bank for Reconstruction and Developmenthttp://www.ebrd.comLondon
16/4/56CEB Council of Europe Development Bankhttp://www.coebank.orgCoordinated organisationParis
14/11/73BOAD Banque ouest-africaine de développement West African Development Bankhttp://www.boad.orgUnion économique et monétaire ouest-africaine, Cf.BCEAO Banque centrale des États de l'Afrique de l'OuestLomé
1975BDEAC Banque de developpement des États de l'Afrique centrale, Development Bank of Central African Stateshttp://www.bdeac.orgCommunauté économique et monétaire de l'Afrique centrale (CEMAC). Not to be confused with BEAC Banque des États de l’Afrique centraleBrazzaville, Congo

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,[1] headquarters in The Hague; one of the largest bilateral development banks worldwide.
  • the DEG German Investment Corporation or Deutsche Investitions- und Entwicklungsgesellschaft,[2] headquartered in Cologne, Germany.
  • the French Development Agency,[3] and Caisse des dépôts, founded 1816, both headquartered in Paris, France.
  • the CDC Group,[4] is a development finance institution owned by the UK Government headquartered in London.

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)

FoundedNamewww AddressNotesHQ
17/5/1930BIS Bank for International Settlementshttp://www.bis.orgThe bank of all central banks, 60 membersBasle, Basel, Bâle
1958EIB European Investment Bankhttp://www.eib.org Created by European Union member states to provide long-term finance, mainly in the EULuxembourg
2/15/1965AACB African Association of Central Banks, ABCA Association des Banques Centrales Africaineshttp://www.aacb.org/Consists of 40 African central banksDakar, Senegal.
10/7/1970IIB International Investment Bankhttp://www.iib.intConsists of 9 member countries from 3 continentsMoscow, Russia
8/1976NIB Nordic Investment Bank[5]http://www.nib.intLending operations in its 8 member countries and emerging markets on all continents.[6]Helsinki, Finland
3/2/1982SEACEN South East Asian Central Banks Centrehttp://www.seacen.org19 Asian central banksKuala Lumpur, Malaysia
24/1/1997BSTDB Black Sea Trade and Development Bankhttp://www.bstdb.org11 member countries,corresponding to the Organization of the Black Sea Economic CooperationThessaloniki, Greece
1998ECB European Central Bankhttp://www.ecb.intCentral bank of 18 EU countries that have adopted the euroFrankfurt am Main
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See also

References
  1. "Archived copy". Archived from the original on 2011-09-05. Retrieved 2011-06-04.CS1 maint: archived copy as title (link)
  2. "Homepage". Deginvest.de. Retrieved 2017-04-24.
  3. "Home". Afd.fr. Retrieved 2016-08-01.
  4. "Home". cdcgroup.com/. Retrieved 2017-09-11.
  5. "Nordic Investment Bank". Nib.int. Retrieved 2016-08-01.
  6. "Nordic Investment Bank - About NIB". Nib.int. Retrieved 2016-08-01.
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