What is the name of the development bank established by BRICS countries?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer
New Development Bank
Explanation
The multilateral development bank established by the BRICS states (Brazil, Russia, India, China, and South Africa) is officially named the New Development Bank (NDB). The agreement to set up the bank was signed in 2014 during the 6th BRICS Summit held in Fortaleza, Brazil, and it formally began its operations in 2015.
The NDB was created to mobilize resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies, serving as an alternative to traditional Western-dominated financial institutions like the World Bank and the International Monetary Fund (IMF). The bank is headquartered in Shanghai, China, and its first elected president was K. V. Kamath from India. Over the years, the bank has expanded its membership to include nations beyond the core BRICS founders, such as Bangladesh, the United Arab Emirates (UAE), Uruguay, and Egypt.
Key Points
The initial authorized capital of the New Development Bank was $100 billion, with an initial subscribed capital of $50 billion shared equally among the five founding members to ensure equal voting rights without any single country holding veto power. The concept was first proposed by India at the 4th BRICS Summit in New Delhi in 2012.
Important Questions and Answers
Question: In which city is the global headquarters of the BRICS-established New Development Bank (NDB) located?
Answer: Shanghai, China.
Question: Who was appointed as the historic first president of the New Development Bank following its operationalization?
Answer: K. V. Kamath (from India).