49317076 ppt-on-international-financial-institutions

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  • Alphabet Soup of International Financial Institutions Look at your index card and can you tell me what acronym you have?
  • 49317076 ppt-on-international-financial-institutions

    1. 2. DEFINITION <ul><li>IFI refers to financial institutions that have been established by more than one country. </li></ul><ul><li>The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions. </li></ul>
    2. 3. INTERNATIONAL FINANCIAL INSTITUTIONS <ul><li>World Bank </li></ul><ul><li>IMF </li></ul><ul><li>Asian Development Bank </li></ul><ul><li>International Finance Corporation </li></ul>
    3. 4. World Bank <ul><li>Established July 1, 1944 </li></ul><ul><li>WB Group consist of </li></ul><ul><ul><li>International Bank of Reconstruction & Development </li></ul></ul><ul><ul><li>International Development Agency </li></ul></ul><ul><ul><li>International Financial Corporation </li></ul></ul><ul><ul><li>Multilateral Investment Guarantee Agency </li></ul></ul><ul><ul><li>International Center for Settlement of International Dispute </li></ul></ul>Norwegian Delegation, Bretton Woods, July 1944
    4. 5. WORLD BANK <ul><li>185 COUNTRY </li></ul><ul><li>The five largest shareholders France, Germany, Japan, UK and US . </li></ul><ul><li>Low-interest loans </li></ul><ul><li>Interest - free credits . </li></ul><ul><li>Grants to developing countries </li></ul><ul><li>Financial & Technical Assistance. </li></ul>
    5. 6. World Bank ( IBRD ) <ul><li>IBRD or International Bank for Reconstruction & Development or World Bank was established in 1947. </li></ul><ul><li>::: Objectives Of IBRD::: </li></ul><ul><li>The original objective was to make loans to develop the war shattered economies of Europe in the Second World War. </li></ul><ul><li>To promote investment by means of guarantee and participation in loans and other investments made by private investors. </li></ul><ul><li>To provide loans to big projects </li></ul><ul><li>To help the poor countries by providing them loans and information assistance. </li></ul>
    6. 7. World Bank ( IBRD ) <ul><li>::Sources of IBRD:: </li></ul><ul><li>Quotas: The membership of the world is the same as that of IMF. Members make contribution in relation to their IMF Quota. </li></ul><ul><li>Bonds: The World Bank also sells Bonds in the capital markets to raise funds. </li></ul><ul><li>Income: A very small proportion of the IBRD funds come from the interest on loans advanced by it. </li></ul>
    7. 8. IMF…International Monetary Fund <ul><li>Establishment: it was the outcome of Wood Agreement signed by 44 major countries of the world in July 1944 in USA. </li></ul><ul><li>Organization: It is an autonomous body and is affiliated to UNO. The management of Fund is under control of two bodies: </li></ul><ul><li>a) Board of governor, b) Board of Executive directors </li></ul>
    8. 9. IMF…International Monetary Fund <ul><li>a) Board of governor: it formulates the general policies of the Fund </li></ul><ul><li>b) Board of Executive directors: it is responsible for the day to day activities of the Fund. </li></ul><ul><li>Membership: All those counties which agree to subscribe to Funds Article of Agreement are eligible to Funds Membership. The membership of Fund has risen from 44 nations to 183 now. </li></ul>
    9. 10. IMF…International Monetary Fund <ul><li>Quotas: Each member has to contribute a quota to fund. The size of the quota depends upon the national income and share in international trade of that country. The quota is made up of 75 % in the country's currency and 25 % in gold. </li></ul>
    10. 11. IMF…International Monetary Fund <ul><li>::Functions of IMF:: </li></ul><ul><li>Maintaining exchange stability among the members countries </li></ul><ul><li>Borrowing: The credit facility has been raised up to 45 % of one’s quota over a three years period. </li></ul><ul><li>Correcting Balance of Payment (A balance of payments (BOP) sheet is an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country's exports and imports of goods, services ) </li></ul><ul><li>Interest charges: It charges interest on the credit provided to member countries. </li></ul>
    11. 12. <ul><li>5) Technical Assistance: it helps the members by providing the services of specialist and experts in concerned fields. </li></ul><ul><li>6)Compensatory Finance Scheme: if a member is facing difficulty in receipt of export credit, the IMF can give loan to member with few conditions. </li></ul><ul><li>7) The extended Fund Facility: For the assistance of correcting the balance of payments of the member countries, introduced in 1974 by IMF </li></ul><ul><li>8) The Supplementary Financing Facility: This scheme was introduced in 1979 in order to give long term loans to less developed counties </li></ul>
    12. 13. <ul><li> </li></ul><ul><li>9.Increasing international monetary co-operation. </li></ul><ul><li>10.Promoting the growth of trade. </li></ul><ul><li>11.Promoting exchange rate stability. </li></ul><ul><li>12.Establishing a system of multilateral payments member countries. </li></ul><ul><li>13.Building reserve base. </li></ul><ul><li>14.Funding facilities. </li></ul>
    13. 14. Asian Development Bank <ul><li>It was established on December 4, 1966 with an authorized capital of 58 billion dollars. </li></ul><ul><li>The purpose of its formation was to lend funds, promote investment and provide technical assistant to the countries mainly in Asian region. </li></ul><ul><li>:::Features:::: </li></ul><ul><li>It is an Asian Bank </li></ul><ul><li>Its membership is now extends beyond the Asian countries. It has 16 non.regional donor nations led by USA. The total number of members are now 55 </li></ul>
    14. 15. Asian Development Bank <ul><li>This was emerged as a result of the “Economic Commission For Asia and Far East” held in Manila in December 1963. </li></ul><ul><li>It was decided that the capital formation in the developing countries is not possible through domestic savings only and capital should be made available to the low income countries by establishing a bank. </li></ul>
    15. 16. Asian Development Bank <ul><li>:::: Functions::::: </li></ul><ul><li>Provide loans to low income countries. </li></ul><ul><li>Promote investments in private as well as in public sector. </li></ul><ul><li>Help the member counties in foreign trade. </li></ul><ul><li>It provides technical assistance for preparation, financing and execution of development projects. </li></ul><ul><li>It also helps the UNO in various projects ( But in rare cases ) </li></ul>
    16. 17. Asian Development Bank <ul><li>:::: Organization:::: </li></ul><ul><li>The bank has a Board of Governors, Board of Directors, a President and a vice President. </li></ul>
    17. 18. International Finance Corporation <ul><li>Established in 1956, IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world. It promotes sustainable private sector development primarily by: </li></ul><ul><li>Financing private sector projects and companies located in the developing world. </li></ul><ul><li>Helping private companies in the developing world mobilize financing in international financial markets. </li></ul><ul><li>Providing advice and technical assistance to businesses and governments. </li></ul>
    18. 19. International Finance Corporation <ul><li>The International Finance Corporation ( IFC ) promotes sustainable private sector investment in developing countries. </li></ul><ul><li>IFC is a member of the World Bank Group and is headquartered in Washington, DC. It shares the primary objective of all World Bank Group institutions: to improve the quality of the lives of people in its developing member countries. </li></ul>
    19. 20. International Finance Corporation <ul><li>IFC has 182 member countries , which collectively determine its policies and approve investments. To join IFC, a country must first be a member of the International Bank for Reconstruction and Development (IBRD). IFC's corporate powers are vested in its Board of Governors, to which member countries appoint representatives. </li></ul>
    20. 21. <ul><li>Its main function is to provide finance for industrial projects to the private enterprises in developing countries. </li></ul><ul><li>The loan is repayable in a period of 5 to 15 years. </li></ul>
    21. 22. <ul><li>THANK YOU </li></ul>

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