ROLE OF INTERNATIONAL

FINANCIAL INSTITUTIONS ON
INDIAN ECONOMY:

PRESENTED BY:
NAINA GUPTA
INTERNATIONAL FINANCIAL
INSTITUTIONS:
International financial institutions (IFIs) are financial institutions that
have been established by more than one country, and hence are subjects
of international laws. Their 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 exist and are technically IFIs. Many of these are multilateral
development banks (MDB).
 WHAT ARE INTERNATIONAL
FINANCIAL INSTITUTIONS (IFI’S)?
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 (ICSID)

International Monetary Fund (IMF)

Regional development banks, such as:

 African Development Bank (AFDB)
 Asian Development Bank (ADB)
 CONTINUED…..
 Inter-American Development Bank (IADB)
 Bank of the South
 European Bank for Reconstruction and Development (EBRD)

Other regional financial institutions e.g. European Investment Bank (EIB)

Export Credit Agencies of individual country governments, such as:

 US Export Import Bank (EXIM)
 Japan External Trade Organization
 Hermes Kreditversicherungs (Germany)
 INTERNATIONAL
FINANCIAL INSTITUTIONS:

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.
PLANS LED BY G-20 G20 leaders and delegates attend the Summit
on Financial Markets and the World Economy
SUMMIT IN Saturday at the National Building Museum in
Washington, D.C. on November 15, 2008.
WASHINGTON D.C:
1. World Bank Group (WBG)
2. International Monetary Fund
(IMF)
3. European Bank for
Reconstruction and
Development (EBRD)
4. Asian Development Bank (ADB)
5. African Development Bank
(AFDB)
6. Inter-American Development
Bank (IDB)
 World Bank
WORLD BANK
GROUP:
The term "World Bank" generally refers to
just the IBRD and IDA
The World Bank's activities are focused on  Formation- 27 December 1945
developing countries, in fields such as
Type- International organization
human development, agriculture and rural
development, environmental protection, Legal status- Treaty
infrastructure, and governance. Purpose/focus-
Economic development,
poverty elimination
Membership- 187 countries
It is concerned with assisting its
member countries to achieve President- Robert Zoellick
sustained economic growth. It Jim Yong Kim (Elect)
functions as an intermediary for Main organ- Board of Directors
the transfer of financial Website- worldbank.org
resources from the more
developed to the less developed
countries.
 ROLE OF WORLD
BANK:
FIGHTS POVERTY BY OFFERING 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.

THE WORLD BANK GROUP CREATED A NEW $1.2 BILLION

RAPID FINANCING FACILITY- THE GLOBAL FOOD
RESPONSE PROGRAM (GFRP)- IN MAY 2008 TO SPEED
ASSISTANCE TO THE NEEDIEST COUNTRIES. GFRP HAS
APPROVED AND BEGUN DISBURSING $200 MILLION IN 21
COUNTRIES.
THE WORLD BANK
GROUP
 INTERNATIONAL BANK
FOR RECONSTRUCTION
AND DEVELOPMET
(IBRD):

1.The International Bank for Reconstruction

and Development was established in 1945.
2. It had 184 members.
3. The IBRD is an international organization
whose original mission was to finance the
reconstruction of nations devastated by
World War II.
4. Now, its mission has expanded to fight
poverty by means of financing states.
5. Cumulative lending: $394 billion
6. Fiscal 2004 lending: $11 billion for 87 new
operations in 33 countries
 INTERNATIONAL
DEVELOPMENT
ASSOCIATION (IDA):
1.The International Development Association
was established in September 24, 1960.
2. 165 Members is the part of the World Bank
that helps the world’s poorest countries.
3. IDA is responsible for providing long-term,
interest-free loans to the world's 80
poorest countries, 39 of which are in
Africa.
4. Fiscal 2004 commitments: $9 billion for
158 new operations in 62 countries
 MULTILATERAL
INVESTMENT AND
GUARENTEE AGENCY
(MIGA):

1. The Multilateral Investment

Guarantee Agency was established
in 1988.
2. It had165 members.
3. Cumulative guarantees issued:
$13.5 billion (Amounts include funds
leveraged through the Cooperative
Underwriting Program).
4. Fiscal 2004 guarantees issued: $1.1
billion
 INTERNATIONAL
FINANCE
CORPORATION
(IFC):
1. The International Finance Corporation
was established in 1956.
2. It had 176 members.
3. Committed portfolio: $23.5 billion
(includes $5.5 billion in syndicated
loans).
4. It promotes sustainable private sector
investment in developing countries as
a way to reduce poverty and improve
people's lives.
5. Fiscal 2004 commitments: $4.8 billion
for 217 projects in 65 countries.
 INTERNATIONAL
CENTRE FOR THE
SETTLEMENT OF
INVESTMENT
DISPUTES (ICSID):
1. The International Centre for
Settlement of Investment Disputes
was established in 1966.
2. It had 143 members.
3. Total cases registered: 159
4. It provides facilities for the
conciliation and arbitration of
investment disputes between
member countries and individual
investors.
5. Fiscal 2004 cases registered: 30
 INTERNATIONAL International Monetary
Fund
MONETARY FUND
(IMF):
The International Monetary Fund was created
in 1944, with a goal to stabilize exchange rates and
supervise the reconstruction of the world’s
international payment system.
1- Promote international monetary cooperation.
2-Shorten the duration and lessen the degree of
disequilibrium in the international balances of
Formation- Adopted: July 22, 1944
payments of members. (67 years ago) Entered into force:
3-Facilitate the expansion and balanced growth of December 27, 1945
international trade. Type- International Economic Organization
4-Promote Exchange stability and maintain orderly Headquarters- Washington, D.C.
exchange arrangements among members. Membership- 1 nation (founding); 188
5-Assist in establishing a multilateral system of nations (to date)
payments. Official languages- English, French, and
Spanish
The IMF provides financial assistance
Managing Director- Christine Lagarde
to members to help them to correct
Main organ- Board of Governors
balance of payments problems in a
Website- www.imf.org
manner that promotes sustained
 
growth.
 ROLE OF INTERNATIONAL
MONETARY FUND:

Involves the The IMF also lends to

monitoring of countries with balance
economic and of payments
difficulties, to provide
financial temporary financing The IMF provides
developments, and and to support polices countries with
the provision of aimed at correcting the technical assistance
policy advice, underlying problems; and training in its
aimed especially at loans to low-income areas of expertise.
crisis-prevention. countries are also
aimed especially at
poverty reduction.
 BENEFITS TO INDIA BY
IMF:

 Freedom to Rupee

 Membership of the World bank

 Importance of India in international field

 Technical advice and training

 EUROPEAN BANK FOR
RECONSTRUCTION AND
DEVELOPMENT (EBRD):
EBRD provide project financing for banks, industries and businesses, both new ventures and
investments in existing companies. We also work with publicly owned companies.

Founded in 1991
1- Financial institution investing in public and private sectors
2- Multinational shareholding: 60 countries, EIB and EU
3- Operates in 27 countries of Central and Eastern Europe and the former Soviet Union)
4- Institution with broader mandate: foster transition to market economy
 ROLE OF EUROPEAN BANKS FOR
RECONSTRUCTION AND
DEVELOPMENT:
Structuring the financing of municipal infrastructure, equipment and services
Promote commercialization and corporatization of services
Development of regulatory structures
Promotion of appropriate private sector involvement
Environmental improvement
Facilitate EU grant and commercial loan co-financing

EBRD assists in developing municipal creditworthiness and improving budgetary

and fiscal practice
EBRD mobilizes financing for municipal advisory services
Support in project appraisal and transaction structuring
Provide most appropriate financing structure from a wide array of financial instruments
Mobilization of co-financing and syndication
 ASIAN
Asian Development
DEVELOPMENT Bank
BANK (ADB):
The Asian Development Bank (ADB) is a 
regional development bank established to facilitate
economic development of countries in Asia.

ITS STATED GOALS:

1- Promoting economic growth Motto- Fighting poverty in Asia and
2.Reducing poverty the Pacific
3.Developing human resources Formation- 22 August 1966
4.Improving the status of women Type- Regional organization
5.Protecting the environment Legal status- Treaty
Purpose/focus- Crediting
The Bank's operations cover a wide spectrum of
activities and have been classified according to the
Headquarters- Mandaluyong City, 
following sectors: Metro Manila, Philippines
1.Agriculture and natural resources Region served- Asia-Pacific
2.Transport and communications Membership- 67 countries
3.Energy President- Haruhiko Kuroda
4.Industry and non-fuel minerals Main organ- Board of Directors
5.Finance
Staff- 2,500+
6.Socialinfrastructure
Website- http://www.adb.org
 ROLE OF ASIAN
DEVELOPMENT BANK:
1- Provides loans and equity investments to its developing
member countries
2- Provides technical assistance for the planning and
execution of development projects and programs and for
advisory services
3-Promotes and facilitates investment of public and private
capital for development
4-Assists in coordinating development policies and plans of
its DMCs
 African Development Bank

AFRICAN
DEVELOPMENT
Formation August 4, 1963
BANK (AFDB):
Type International
organization
Established in 1964 with a mandate to Legal status Treaty
promote economic and social development Purpose/focus Regional
in Africa, the African Development Bank is development
a regional multilateral development
Membership 78 countries
finance institution comprising the African
Development Bank, the African President Donald Kaberu
ka
Development Fund, and the Nigeria Trust
Fund. The opacity of its operations and its Main organ Board of
emphasis on major regional infrastructure Executive
Directors
projects have generated concern among
African and international civil society. Website http://www.afd
b.org
 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.
 Inter-American Development Bank

INTER-AMERICAN
DEVELOPMENT
BANK (IDB): Type International
organization
Headquarters Washington,
The Inter-American Development Bank was DC
founded in 1959. The IDB has 48 member
countries, including 26 Latin American and Membership 48 countries
Caribbean borrowing members.  The bank
supports efforts by 
Official language English,
s Spanish,
Latin America and the Caribbean countries to
French,
reduce Poverty and Inequality and is the largest Portuguese
source of development financing in this area,
besides loans, grants are provided as well
President Luis Alberto
as technical assistance and do research. The Moreno
IDB has a strong commitment to achieve
measurable results, increased integrity, Main organ Board of
transparency and accountability. Governors
Staff About 2,000
Website iadb.org
ROLE OF INTER-AMERICAN
DEVELOPMENT BANK:
1- Using its lending operations, regional initiatives, research and knowledge dissemination
activities, institutes, and programs, the IDB helps to foster sustainable economic and
social development in Latin America and the Caribbean.
2- Through its financing, the Bank prioritizes poverty reduction and social equity,
environmentally sustainable growth, modernization of the state, and regional
integration.
3- IDB has the following main areas of action:
 Reducing poverty and social inequalities;
 Addressing the needs of small and vulnerable countries;
 Fostering development through the private sector;
 Addressing climate change, renewable energy and environmental sustainability; and
 Promoting regional cooperation and integration.
THANK YOU FOR YOUR
KIND ATTENTION