The New Development Bank launched by the BRICS nations has started operations in China. Bank president K V Kamath attended the opening ceremony along with China's finance minister Lon Jinei and Shanghai mayor Yang Xiong.
The NDB will promote the existing international financial system and explore innovations in governance models. It will receive an initial capital of USD 50 billion, with each BRICS member contributing an equal share. The investment will later expand to USD 100 billion in the next couple of years. It was conceived as a counterbalance to western-led financial institutions like the World Bank and the IMF by providing funding for infrastructure and development projects in BRICS countries.
Each nation will have an equal say in the bank’s management, regardless of GDP size, according its officials.
