WORLD BANK

World Bank is an international financial institution that provides loans to developing countries for development programs.

 World Bank was formed on July 1944 at the Bretton Woods Conference.

 Headquarter of World Bank is located at Washington D.C. (U.S.A.)

 The main purpose of the world bank is ''Reduction of Poverty''.

 Current member nations of world bank are 188.

 Now the president of the World Bank is Jim Yong Kim.

 World Bank is comprises of two institutions - International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

 World Bank is member of the United Nations Development Group as well as World Bank Group.

 World Bank Group includes - International Bank for Reconstruction and Development (IBRD), International Development Association, International Finance Corporation, Multilateral Investment Guarantee Agency, International Center for Settlement of Investment Disputes.

 The president of the world bank comes from the largest shareholder. Members are represented by a Board of Governors.

 If a country wants to be a member of world bank, it has to purchase the shares of world bank group institutions as per agreement, rules and regulations set.

 The five largest shareholders are U.S. , U.K. , France, Germany and Japan.

 The largest shareholders nations has their own Executive Directors.

Objectives and Functions of World Bank

 To help in reconstruction and development of member countries.

 Spread peace all over the world regarding financial terms.

 Helps to the economies of those countries destroyed by wars.

 Helps to developing and less developed countries by crediting the finance.

 To promote private foreign investments.

 To promote long term balanced growth of international trade.

 Maintenance of equilibrium in balance of payments of member countries and also to increase the standard of living as well as labor conditions of developing and less developed countries.

 Investment of money in productive purposes only.

 World Bank provides various technical services to member countries. "The Economic Development Institute" and a "Staff College" has established by world bank in Washington.

 World Bank can grant loans to a member country up to 20% of that country share in the paid up capital.

 The interest rate, quantities of loans and all any other terms and conditions are determined by world bank itself.

 The borrower nation has to repay either in reserve currencies or in the currency in which the loan was sanctioned.