The New Development Bank (NDB), also known as the BRICS Development Bank, is a world financial structure created and operated by Brazil, Russia, India, China and South Africa. It was set up between the 5 countries as an alternative to the World Bank and IMF (International Monetary Fund). Both the World Bank and IMF are U.N. organizations which are both mostly controlled by Europe and North America. The new BRICS global bank looks to originate it’s first loan in April of 2016 and the Renminbi (RMB) will be the currency issued.
Since 2008, formerly known as BRIC, the heads of government for each of the countries have attended a conference known as the BRIC Summit. The original BRIC countries alone currently make up over 40 percent of the world population and account for over 20 percent of the world’s goods and services. At the end of 2010 South Africa was added to the alliance, forming BRICS. The set up of the New Development Bank was first discussed in March of 2012 at the 4th BRICS Summit in Delhi.
The banking infrastructure was originally conceived and set up to avoid the ups and downs of the western dominated markets and to reduce the role the U.S. Dollar played in the different BRICS economies. The new bank hopes to stimulate further growth and cooperation between the included countries and currently is set up to work hand in hand with the Asian Infrastructure Investment Bank (AIIB). Together AIIB and NDB are being dubbed western banking rivals with a primary focus in the Asia-Pacific region. Articles for AIIB were signed on June 29th, 2015, and to date amendments seem ongoing. On July 21, 2015 New Development Bank (NDB) officially launched business.