The creation of the New Development Bank (NDB) and the Asian Infrastructure Investment Bank (AIIB) has generated a great deal of attention and controversy in the development community and beyond. Martin H. Mauritsen MSc in Development … The New Development Bank (NDB), established by the BRICS, is an ambitious project. The successive launch of two new multilateral development banks, both headquartered in China led to a renewed interest in the role, scope and ambition of these institutions. It’s ownership structure is unique, as the BRICS countries each have an equal share and no country has any veto power.

The VDB, which replaces the Fund for Support of Development founded on July 8, 1999, will have a statutory capital of VND5 trillion and an operating duration of 99 years. The New Development Bank was agreed to by BRICS leaders at the 5th BRICS summit held in Durban, South Africa in 2013. The bank is set up to foster greater financial and development cooperation among the five emerging markets.

What are the geopolitical implications the New Development Bank may have on the global economic order?

Do these banks indicate that China is promoting a new model of multilateral development finance that undermines the existing system dating back to Bretton Woods?

There were several reasons for creating the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB). All multilateral institutions that were set up following the creation of the World Bank and the IMF have a regional or sub-regional reach (e.g. For one thing, emerging markets were dissatisfied with their share of voting rights within the established IFIs. New development bank to be established... decided to establish the Viet Nam Development Bank (VDB), which will focus on executing the State’s policies on finance for export, investment and development. Two new multilateral development banks are changing the landscape of international financial institutions (IFIs).

The New Development Bank: The first multilateral BRICS Bank has been established to create a tangible instrument for increasing economic cooperation between the BRICS nations while at the same time reflecting the close relations among them. The aim of the bank is to mobilize funding for infrastructure and sustainable development.

It was established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil.

The announcement coincided with the annual BRICS summit hosted in the Brazilian capital of Brasilia this week under the general theme "BRICS: Economic growth for an innovative future." On Wednesday, the BRICS-founded New Development Bank (NDB) and the Russian government concluded an agreement to host the NDB's Eurasian Regional Centre in Moscow. When signing the … The bank was established in July 2015 by the BRICS countries (Brazil, Russia, India, China and South Africa). It is the first time since Bretton Woods, when the World Bank and the IMF were created, that a multilateral financial institution of global scope is established.

This was reflected in the agenda of the G20 in 2016 in Hangzhou where the enhanced role of MDB’s and their role in promoting green finance were given special prominence. Headquartered in …