China ratifies creation of new BRICS bank

World's largest emerging nations are creating second development bank seen as alternative to Western institutions.

    Russia and India have already ratified the agreement for the creation of the BRICS bank [AP]
    Russia and India have already ratified the agreement for the creation of the BRICS bank [AP]

    China's parliament has ratified an agreement with the world's largest emerging nations to create a new development bank, state news agency Xinhua reported.

    The New Development Bank, also known as the BRICS Bank, is one of two international development banks that China is promoting as an alternative to Western institutions such as the World Bank.

    The Standing Committee of the National People's Congress, China's legislature, on Wednesday approved the agreement between Brazil, Russia, India, China, and South Africa to create the bank, Xinhua said.

    China has pledged to contribute a total of $41bn to the bank, giving it the largest voting right at 39.5 percent.

    The bank will have initial authorised capital of $100bn, and its initial subscribed capital of $50bn will be equally shared among the founding members, Xinhua said.

    Last month, state media said that China would inject $10bn into the bank once the Chinese parliament had ratified the agreement.

    Russia and India ratified the agreement in April.

    The bank, which will be headquartered in Shanghai, will first be led by an Indian, followed by a Brazilian and then a Russian.

    China has also led the creation of a new Asian development bank, known as the Asian Infrastructure Investment Bank, which counts among its 57 member countries nations such as Britain and Germany.

    SOURCE: Reuters


    YOU MIGHT ALSO LIKE

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    The Coming War on China

    The Coming War on China

    Journalist John Pilger on how the world's greatest military power, the US, may well be on the road to war with China.