Each member designates its central bank as custodian, in which the Bank may keep its holdings on that member`s currency and other bank assets. When a member does not have a central bank, it appoints, in agreement with the Bank, another institution for this purpose. On May 11, 2015, K. V. Kamath was appointed President of the Bank. [7] According to media reports, other multilateral development institutions, including the World Bank Group (WBG), have expressed their intention to cooperate with the NDB. [40] New Development Bank has an initially underwritten capital of $50 billion and an initially authorized capital of $100 billion. The capital initially subscribed is divided equally among the founding members. The payment of the amount initially taken out by each founding member to the Bank`s paid-in capital is made in 7 dollar instalments. [1] Each member cannot increase its share of the capital without the agreement of the other four members. The Bank will allow new members to join, but the share of BRICS capital should not fall below 55%. [23] On July 15, 2014, the first day of the 6th BRICS Summit in Fortaleza, Brazil, the BRICS signed the New Development Bank Agreement, which provides for provisions on the Bank`s legal basis.
[1] In a separate agreement, a $100 billion reserve pool was set up by the BRICS. [6] According to a representative of the bank`s management, nDB and AIIB are sister institutions in many respects. These two banks have complementary mandates and different geographical priorities, with the NDB focusing more on BRICS COUNTRY. At the same time, there is some overlap between the mandates of the NDB and the AIIB, both of which aim to develop infrastructure and pay particular attention to sustainable development. However, given that current financing and investment models are insufficient to meet investment needs, “there is room for newcomers,” he said. [38] The first annual meeting of the NDB Board of Governors was held on July 20, 2016 in Shanghai. Participants in the meeting reviewed the Bank`s future work and development and positively assessed the Bank`s work. At the meeting, the first issue of green renminbi bonds was highlighted as an important step for the NDB. [12] In line with the Bank`s overall strategy, sustainable infrastructure development is at the heart of the NDB`s operational strategy for 2017-2021, and the Bank will spend about two-thirds of its financing commitments in the first five years. [25] In 2014, Brazil, Russia, India, China and South Africa, known as BRICS, announced the creation of the New Development Bank (NDB) and the Contingency Reserve Arrangement (CRA).