International financial institutions

1. PRESENTATION
ON
INTERNATIONAL FINANCIAL INSTITUTION
SUBMITTED TO
MRS. MANU GAHLAWAT

2. FINANCIAL INSTITUTION
 Financial institution is an institution or organization that provides
financial services for its clients ,members and society.
 The financial services including banks ,trust companies,
insurance companies brokerage firms and investment.
 These institution are responsible for distributing financial
resources in a planned way to the potential users.

3. INTERNATIONAL FINANCIAL INSTITUTIONS
 IFIs are institution that provide financial support and professional
advice for economic and social development activities in
developing countries.
 These financial institution are established by more than one
country.
 There owners or shareholders are generally national governments
,although other international institutions and other organization
occasionally figure as shareholders.
 Ex- IMF, World bank, Asian development bank, African
development bank.

4. What are International Financial
Institution(IFIs)?
WORLD BANK GROUP(WBG)
 International Bank for Reconstruction and Development(IBRD)
 International Development Association(IDA)
 International Finance corporation(IFC)
 Multilateral Investment Guarantee Agency(MIGA)
 International Centre for settlement of investment Disputes(CISD)
INTERNATIONAL MONETARY FUND
REGIONAL DEVELOPMENT BANK,such as:
 African Development bank(AFDB)
 Asian Development bank(ADB)

5. CONTINUED
 Inter-American Development bank(IADB)
 European Bank for reconstruction and Development(EBRD)
OTHER Regional financial institutions eg:European
development bank
Export Credit Agencies of individual country governments ,such
as:
 US Export Import Bank(EXIM)
 Japan External Trade Organization

6. EUROPEAN BANK FOR RECONSTRUCTION
AND DEVELOPMENT(EBRD)
EBRD provide project financing for banks ,industries and
businesses, both new ventures and investment in existing companies
 Founded in 1991
 Financial institution investing in public and private sectors
 Multinational shareholding:60 countries, EIB and EU.
 Operates in 27 countries of central and eastern Europe.

7. ASIAN DEVELOPMENT BANK(ADB)
The Asian Development Bank is a regional development bank
established to facilitate economic development of countries in Asia.
 Set up in 1986`
GOALS:
1. Promoting economic growth
2. Reducing poverty
3. Developing human resources
4. Improving the status of women
5. Protecting the envioronment
Membership: 67 countries
Staff : 2500+

8. AFRICAN DEVELOPMENT BANK(ADB)
 Established in 1964
 Formation : August 4,1963
 Membership: 78 countries
 Promote economic and social development in Africa
 African developmental bank is a regional multilateral
development finance institution comprising the African
developmental bank , the African developmental fund and the
Nigeria trust fund.

9. ROLE OF AFRICAN DEVELOPMENT BANK
 The main role of the African Development Bank is to help the
development of countries in Africa by making loans and equity
investments in various projects and programs.
 African Development bank also provides technical assistance on
development projects.
 African Development Bank helps in coordinating the
development projects of the various countries involved.

10. INTER-AMERICAN DEVELOPMENT BANK(IDB)
 The inter-American development bank was founded in 1959.
 IDB has 48 member countries, including 26 latin American and
Caribbean borrowing members.
 The bank supports efforts by Latin America and the Caribbean
countries to reduce poverty and inequality and is the largest
source of development financing in this area, besides loans
,grants are provided as well as technical assistance and do
research.
 IDB has a strong commitment to achieve measurable results,
increased integrity, transparency and accountability

11. INTERNATIONAL FUND FOR AGRICULTURE
DEVELOPMENT (IFAD)
 Established in 1974
 Initial funding of $1 billion
 Objective : eliminate rural poverty in developing countries by
providing aid for agricultural development
 Supports rural programs that empower women and rural poor.
 Investment: 11.8 billion in poverty eradication projects across
the world.

12. THEIR COMMON GOAL
 To reduce global poverty and improve people’s living conditions
and standards.
 To support sustainable economic, social and institutional
development ; and
 To promote regional cooperation and integration

13. FUNCTIONS OF IFIs
 Fights poverty by providing developmental assistance to middle
income and low income countries.
 Give loans and offers advice and training in both the private and
public sectors.
 Aims to eliminate poverty by helping people help themselves.
 Exchange stability
 Multinational convertibility of currencies
 Promotion of International trade

14. WORLD BANK
 Established july 1,1994
 185 Country
 The five largest shareholders France,Germany, Japan, UK and
US.
 Low interest loans
 Interest free credits
 Grants to developing countries
 Financial and technical assistance

15. INTERANTIONAL MONETARY FUND(IMF)
 Establishment :it was outcome of Bretton wood conference on
dec 27,1945 and came into operation march 1, 1947.
 Organization: it is an autonomous body and is affiliated to
UNO.The management of fund is under control of two bodies.
 a) Board of governer:it formulates the general policies of the fund
 b)Board of executive directors:it is responsible for the day
activities of the fund
 Membership:All those countries which agree to subscribe to
funds “article of Agreement” are eligible to funds membership.
 The membership of fund has risen from 44 nations to 188 now.

16. IMF
OBJECTIVES
 To promote global monetary cooperation
 To facilitate the growth of International trade
 To promote Exchange stability
 To give confidence to the members
FUNCTIONS OF IMF
 Surveillance
 Lending
 Technical assistance

17. ORGANISATIONAL STRUCTURE
Board of Governors
Executive Board of Directors
Managing Director
Staff

18. ROLE OF IMF
1) Economic surveillance
2) Loans to countries
3) Technical Assistance and Economic Training
4) Preparing Economic reports
5) Providing the machinery for International Monetary
problems.

19. BENEFITS TO INDIA BY IMF
 Freedom to Rupee
 Membership of the World Bank
 Importance of India in International field
 Technical advice and training