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    Internation Financial Institution G1 052202

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    Internation Financial Institution G1 052202

    Uploaded by

    Kai
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    9 views31 pages

    Internation Financial Institution G1 052202

    Uploaded by

    Kai

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 31

    PRESENTATION

    ON
    INTERNATIONAL
    FINANCIAL
    INSTITUTIONS
    FINANCIAL INSTITUTION
     Financial institution is an institution or organization that
    provides financial services for its clients ,members and
    society.
     The financial services including banks ,trust companies,
    insurance companies brokerage firms and investment.
     These institution are responsible for distributing
    financial resources in a planned way to the potential
    users.
    INTERNATIONAL FINANCIAL
    INSTITUTIONS
     IFIs are institution that provide financial support and professional
    advice for economic and social development activities in
    developing countries.
     These financial institution are established by more than one
    country.
     There owners or shareholders are generally national governments
    ,although other international institutions and other organization
    occasionally figure as shareholders.
     Ex- IMF, World bank, Asian development bank, African
    development bank.
    EXAMPLES:

    World Bank
    IMF
    Multilateral
    development banks
    UN agencies
    World Bank
     Established July 1,1944
    WORLD BANK GROUP(WBG) consist of
     International Bank for Reconstruction and Development(IBRD)
     International Development Association(IDA)
     International Finance corporation(IFC)
     Multilateral Investment Guarantee Agency(MIGA)
     International Centre for settlement of investment
    Disputes(ICISD)
    WORLD BANK
     185 COUNTRY
     The five largest shareholders are France, Germany, Japan, UK,
    and US.
     Low- interest loans
     Interest- free credits
     Grants to developing countries
     Financial and Technical Assistance
    INTERNATIONAL MONETARY
    FUND (IMF)

    The International Monetary Fund (IMF) is an


    international organization that promotes
    global economic growth and financial
    stability, encourages international trade, and
    reduces poverty.
    INTERNATIONAL MONETARY FUND
    (IMF)
     Establishment :it was outcome of Bretton wood conference on
    Dec. 27,1945 and came into operation march 1, 1947.
     Organization: it is an autonomous body and is affiliated to UNO.
    The management of fund is under control of two bodies.
     a) Board of governer:it formulates the general policies of the fund
     b)Board of executive directors: it is responsible for the day
    activities of the fund
     Membership: All those countries which agree to subscribe to
    funds “article of Agreement” are eligible to funds membership.
     The membership of fund has risen from 44 nations to 188 now.
    THE ROLE OF IMF
     Increasing international monetary co-operation.
     Promoting the growth of trade.
     Promoting exchange rate stability.
     Establishing a system of multilateral payments member countries.
     Building reserve base.
     Funding facilities.
     Economic surveillance
     Loans to countries
     Preparing Economic reports
     Providing the machinery for international Monetary problems.
    IMF
    OBJECTIVES
     To promote global monetary cooperation
     To facilitate the growth of International trade
     To promote Exchange stability
     To give confidence to the members

    FUNCTIONS OF IMF
     Surveillance
     Lending
     Technical assistance
    ORGANISATIONAL STRUCTURE
    Board of Governors

    Executive Board of Directors

    Managing Director

    Staff
    The International Monetary Fund( IMF)
    and the World Bank
     IMF and the World Bank were founded after the World War II.
     These institution aimed to help the economic stability of the
    world.
     Both of them are basically banks, but instead of being started by
    individuals like regular banks, they were started by countries.
     IMF and the World Bank were designated to complement.
     The IMF’s main goal was to help countries which are in trouble
    at that time and who could not obtain money by any means.
    MULTILATERAL DEVELOPMENT
    BANKS
    A multilateral development bank (MDB) is
    an institution, created by a group of
    countries, that provides financing and
    professional advising for the purpose of
    development.
    EXAMPLES:

     World Bank
     EuropeanBank for Reconstruction and
    Development
     Asian Development Bank
     African Development Bank
     Inter- American Development Bank
    EUROPEAN BANK FOR RECONSTRUCTION
    AND DEVELOPMENT(EBRD)
    EBRD provide project financing for banks ,industries and
    businesses, both new ventures and investment in existing
    companies
     Founded in 1991
     Financial institution investing in public and private
    sectors
     Multinational shareholding:60 countries, EIB and EU.
     Operates in 27 countries of central and eastern Europe.
    ASIAN DEVELOPMENT BANK(ADB)
    The Asian Development Bank is a regional development bank
    established to facilitate economic development of countries in Asia.
     Set up in 1986`
    GOALS:
    1. Promoting economic growth
    2. Reducing poverty
    3. Developing human resources
    4. Improving the status of women
    5. Protecting the environment
    Membership: 67 countries
    Staff : 2500+
    AFRICAN DEVELOPMENT BANK(ADB)

    - African developmental bank is a regional multilateral


    development finance institution comprising the African
    developmental bank , the African developmental fund and the
    Nigeria trust fund.

     Established in 1964
     Formation : August 4,1963
     Membership: 78 countries
     Promote economic and social development in Africa
    ROLE OF AFRICAN DEVELOPMENT BANK
     The main role of the African Development Bank is to
    help the development of countries in Africa by making
    loans and equity investments in various projects and
    programs.
     African Development bank also provides technical
    assistance on development projects.
     African Development Bank helps in coordinating the
    development projects of the various countries involved .
    INTER-AMERICAN DEVELOPMENT BANK(IDB)

     The inter-American development bank was founded in 1959.


     IDB has 48 member countries, including 26 Latin American and
    Caribbean borrowing members.
     The bank supports efforts by Latin America and the Caribbean
    countries to reduce poverty and inequality and is the largest
    source of development financing in this area, besides loans ,grants
    are provided as well as technical assistance and do research.
     IDB has a strong commitment to achieve measurable results,
    increased integrity, transparency and accountability
    INTERNATIONAL FUND FOR
    AGRICULTURE DEVELOPMENT (IFAD)

     Established in 1974
     Initial funding of $1 billion
     Objective : eliminate rural poverty in developing countries by
    providing aid for agricultural development
     Supports rural programs that empower women and rural poor.
     Investment: 11.8 billion in poverty eradication projects across
    the world.
    THEIR COMMON GOAL

     Toreduce global poverty and improve people’s living


    conditions and standards.
     Tosupport sustainable economic, social and
    institutional development ; and
     To promote regional cooperation and integration
    FUNCTIONS OF IFIs
     Fights poverty by providing developmental assistance to
    middle income and low income countries.
     Give loans and offers advice and training in both the private
    and public sectors.
     Aims to eliminate poverty by helping people help themselves.
     Exchange stability
     Multinational convertibility of currencies
     Promotion of International trade
    Types of IFIs

    Bretton woods system


    Regional development banks
    Bilateral development banks
    Other regional financial institutions
    BRETTON WOODS SYSTEM

     After World War II to assist in the reconstruction of


    Europe and provide mechanism for international
    cooperation in managing the global financial system.
     There are 5 key elements included in this system or
    institution.
    5 Key Elements of Bretton Woods System
    1. The expression of currency in terms of gold or gold value to
    establish a par value.
    2. “The official monetary authority in each country ( a central bank or
    its equivalent) would agree to exchange its own currency for those
    of other countries at the established exchange rates, plus or minus a
    one-percent margin”.
    3. Bretton Woods System is the establishments of an overseer for
    these exchange rates; thus, the International Monetary Fund (IMF)
    was founded.
    4. Eliminating restrictions on the currencies of member states in the
    international trade.
    5. The final element is that the U.S dollar became the global currency.
    GENERAL AGREEMENT on
    TARIFS and TRADE
     GATT was a forum for the meeting of representatives
    from 23 members countries. It focused on trade goods
    through multinational trade agreements conducted in
    many “rounds” of negotiation.
     However, “ it was out of the Uruguay Round (1986-
    1993) that an agreement was reached to create the World
    Trade Organization (WTO) “ Ritzer, 2015.
    WORLD TRADE ORGANIZATION

     The WTO headquarters is located in Geneva,


    Switzerland with 152 members states as of 2008
    ( Trachtman, 2007).
     Unlike GATT, WTO is an independent multilateral
    organization that became responsible for trade in
    services, non tariff- related barriers to trade, and other
    broader areas of trade liberalization.
    REGIONAL DEVELOPMENT
    BANKS
     Inter-American Development Bank (which works in the
    Americas, but primarily for development in Latin
    America and the Caribbean.
     Asian Development Bank
     African Development Bank
     European Bank
    BILATERAL DEVELOPMENT
    BANKS
     Bilateral development banks are financial institutions
    set up by individual countries to finance development
    projects I developing countries and emerging markets.
     Examples:Netherlands Development Finance Company
    and German Development Bank.
    REGIONAL FINANCIAL
    INSTITUTONS
     European Investment Bank – an institution established
    by the members of the European Union.
     Black Sea Development Bank
     International Investment Bank- established by the
    countries of the former Soviet Union and Eastern
    Europe.
     Islamic Development Bank
     Nordic Investment Bank
    THANK
    YOU!!!

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