Introduction
International Financial Institutions (IFIs) are the Financial Institutions that has been established (or chartered) by more than one country, and hence are subjects of International Law. The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions (created by two countries) exist and are technically IFIs. This is an important topic for General Awareness section of different competitive exams.
Organizations
Prominent International Financial Institutions are created by group of countries called as multilateral development bank MDB, it provides financing and professional advising for the purpose of development. MDBs have large memberships including both developed donor countries and developing borrower countries.
Below is the detailed list of International Financial Institutions- MDB Headquarters & Functions.
| Abbreviation | AFDB |
| Motto | Building today, a better Africa tomorrow |
| Formed | 1964 |
| Member Countries | 78 Countries (India is also a Member) |
| Head Quarters | Abidjan, Ivory Coast |
| President | Akinwumi Adesina (2015 - Present) |
| Functions | It is established to contribute to the economic development and social progress of African countries. The primary function is to provide loans and equity investments for the socio-economic advancement, Technical assistance for development projects, and assists in organizing the development policies. |
| Abbreviation | ADB |
| Motto | Fighting poverty in Asia and the Pacific |
| Formed | 1966 |
| Member Countries | 67 Countries (India is also a Member) |
| Head Quarters | Mandaluyong, Metro Manila, Philippines |
| President | Takehiko Nakao (April 28, 2013 - Present) |
| Functions | This organisation works on reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. This is carried out through investments in the form of loans, grants and information sharing. |
| Abbreviation | AIIB |
| Formed | December 2015 |
| Member Countries | 50 countries (India is also a member) |
| Head Quarters | Beijing, China |
| President | Jin Liqun (January 2016 - Present) |
| Functions | Its function is to support the building of infrastructure in the Asia-Pacific region. The bank has 50 member states (all "Founding Members") and was proposed as an initiative by the government of China. |
| Abbreviation | EBRD |
| Formed | 1991 |
| Member Countries | 67 countries (India is also a member) |
| Head Quarters | London |
| President | Sir Suma Chakrabarti (2012– present) |
| Functions | It offers project financing for banks, industries and businesses, for new ventures or existing companies. It works with publicly owned companies to support their privatization, as advocated by the WTO since the 1980 and in the improvement of municipal services. |
| Abbreviation | EIB |
| Formed | 1958 |
| Member Countries | 28 member states of the EU (India is not a member) |
| Head Quarters | Luxembourg |
| President | Werner Hoyer (January 2012 – Present) |
| Functions | It is a nonprofit long-term lending institution. It supports for small and medium sized enterprises to attain environmental sustainability and in development of Trans-European Networks of transport and energy and for many others purposes. |
| Abbreviation | IMF |
| Formed | 27 December 1945 |
| Member Countries | 189 countries (India is also a member) |
| Head Quarters | Washington, DC |
| President | Christine Lagarde (5 July 2011 – present) |
| Functions | It works for global growth and economic stability by providing policy, advice and financing to members, by working with developing nations to help them achieve macroeconomic stability and reduce poverty. The IMF provides alternate sources of financing. |
| Abbreviation | IDB |
| Motto | Together We Build a Better Future |
| Formed | 1975 |
| Member Countries | 57 countries (India is not a member) |
| Head Quarters | Jeddah, Saudi Arabia |
| President | Ahmad Mohamed Ali Al Madani (1975 - Present) |
| Functions | This is a multilateral development financing institution which helps in the development of member states. The basic condition for membership is that the prospective member country should be a member of the Organization of Islamic Cooperation. |
| Abbreviation | WBG |
| Formed | 1945 |
| Member Countries | 189 countries (India is also a member) |
| Head Quarters | Washington, DC |
| President | Jim Yong Kim (1 July 2012 – present) |
| Functions | The World Bank focuses on developing countries, in fields such as human development, agriculture and rural development, environmental protection, infrastructure, large industrial construction projects, and governance. |