Those who work in the financial sector in Asia have probably come across the Asian Infrastructure Investment Bank (AIIB). This institution is known for its projects across Asia advocating for various meaningful initiatives.
Aside from the worthwhile activities pursued by this bank, it also opens up valuable opportunities for its stakeholders and individuals who are looking to make a difference in their community and the world.
Those who are not familiar with AIIB might be curious as to what it stands for. To know more about this institution, keep reading.
What is the AIIB?
The AIIB is a multilateral development bank. It is an international financial institution that works with more than one country to foster economic development in countries that are not economically strong. It is based in Beijing, China where its headquarter is.
It consists of 82 member countries with 20 prospective ones. Regional members have a total subscription amount of 73,855.8 (million USD) which makes up 76.3416% of the total. Meanwhile, non-regional members have a total of 22,888.1 (million USD) or 23.6584%.
This bank is known for investing primarily in sustainable infrastructures, as well as other sectors that are proven to be productive and efficient. Its main focus is Asia, but it also looks at sectors in other parts of the word.
It aims to connect people and markets in their focus areas to facilitate sustainability and ultimately improve the lives of communities around the world and to enable them to create a brighter future.
Significant Activities of AIIB
Now that you know what exactly this multilateral bank is, you might be wondering about the activities they conduct to help pursue their goals. Here are some of the most significant actions.
The AIIB takes pride in its governance, especially as it provides funding for various member nations. It seeks to uphold high standards of accountability and transparency. To pursue this goal, the institution has a handbook of laws that govern its operations and management.
The institution has established a Board of Governors and Board of Directors. The former is the highest decision-making body, while the latter is in charge of the general operations of the bank. It also encourages reporting fraud and corruption.
The entire organization is under international law and regulatory mechanisms. In doing its work, it reaches out to local and international law firms and other legal organizations to promote the rule of law and legal culture.
One of the development bank’s main purpose is to provide funding to members or agencies that need financial assistance. It does this service through various ways such as loans, inter alia, equity investments, guaranteeing and underwriting.
It offers sovereign-backed financing, which involves a member government. It also does non-sovereign-backed financing, which is essentially activities that involve private and sub-sovereign entities.
As mentioned, the bank also does equity investment, which means it directly invests in the private or public sector.
Currently, the organization has approved 83 projects. This includes Turkey’s Covid-19 Credit Line Project with an amount of $500 million and Kazakhstan’s COVID-19 Active Response and Expenditure Support (CARES) program with an amount of $750 million.
Partnerships with Organizations Worldwide
The AIIB is a member of the international family of development banks, which means that it works with other organizations in working towards its objectives. To pursue its goals, it has signed agreements with various global organizations.
One of its most notable partnerships is its co-financing framework agreement with the World Bank. It has also made co-financing and cooperation deals with various development banks in Africa, Asia, Eurasia, Europe and America.
Moreover, it has partnered with different private financial organizations, as well as public and non-governmental sectors all in pursuit of its goals for sustainability, development and cooperation.
Some of the memorandums it has signed include the MDBs Alignment Approach to the Paris Agreement and the memorandum of cooperation with the Eurasian Development Bank.
The AIIB has been doing a wonderful job of fulfilling its goals toward helping developing nations and other member countries. Because of this, it has become a remarkable force not only in the infrastructure and financial sectors, but in other industries it affects as well.