Hindustan Times (Jalandhar)

BRICS bank inaugurate­d in Shanghai, KV Kamath is head for 5 yrs

- Sutirtho Patranobis spatranobi­s@hindustant­imes.com

BEIJING: BRICS’ infrastruc­ture-focused, New Developmen­t Bank (NDB) -- one of the two new multilater­al banks heavily backed by China -- began operations in Shanghai on Tuesday with former ICICI Bank head KV Kamath at the helm.

Both the NDB and the recently-launched Asian Investment Infrastruc­ture Bank (AIIB) of which is India is a founding member are often pitched as alternativ­e to existing financial institutio­ns like the World Bank (WB) and the Internatio­nal Monetary Fund (IMF).

The NDB, formed by the emerging economies of Brazil, Russian, India, China and South Africa will begin to operate with the initial capital of $50 billion. It will be expanded to $100 billion within the next couple of years, officials said.

Tuesday’s inaugurati­on in China’s financial capital, Shanghai, was also attended by finance minister Lou Jiwei, the city mayor, Yang Xiong.

“Our objective is not to chal- lenge the existing system as it is, but to improve and complement the system in our own way,” NDB president KV Kamath was quoted as saying in a Reuters report.

The report added that the NDB had decided to set up a “hotline” with the AIIB to discuss issues, and to forge closer ties between “new institutio­ns coming together with a completely different approach”.

The NDB will supplement the existing internatio­nal financial system in a healthy way and explore innovation­s in governance models, Lou said.

Meanhwhile, WB president Jim Yong Kim released a statement congratula­ting KV Kamath and the founding members — Brazil, Russia, India, China, and South Africa.

Newspapers in English

Newspapers from India