New Development Bank (NDB)

Honduras President recently requested the country’s admission to the BRICS-led New Development Bank (NDB).

About New Development Bank (NDB):

• NDB, formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS countries (Brazil, Russia, India, China and South Africa).
• Objective: Financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.
• The idea of setting up NDB was first conceived in 2012 during BRICS Summit in New Delhi, India. The Bank formally came into existence as a legal entity in 2015.
• Headquarters: Shanghai, China
• The first regional office of the NDB was setup in Johannesburg, South Africa. The second regional office was established in 2019 in São Paulo, Brazil, followed by Moscow, Russia.
• Capital: The Bank has an initial authorized capital of 100 billion dollars and an initial subscribed capital of 50 billion dollars.
• Membership in NDB is open to any member of the United Nations.
• Governance Structure:
  • The Bank is governed by a Board of Governors made up of the finance ministers of the five BRICS countries, and a Board of Directors.
  • Voting power within the Board is based on each country’s shares in the bank.
  • While new members can join the NDB, the five BRICS countries will retain a minimum of 55% of total shares.
  • The NDB’s management includes a presidency which rotates among BRICS members, and four vice presidents who are selected from the remaining BRICS countries