International financial institutions

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: Promoting economic growth Reducing poverty Developing human resources Improving the status of women 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 Economic surveillance Loans to countries Technical Assistance and Economic Training Preparing Economic reports 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

20. THANK YOU