BEIJING: China and 20 other Asian nations have launched World Bank rival in Asia called Asian Infrastructure Investment Bank.
Officials signed a memorandum of understanding in Beijing on October 24 to establish the bank.
China’s $50 billion Asian Infrastructure Investment Bank (AIIB) is seen as a challenge to the World Bank and Asian Development Bank, both multilateral lenders that count Washington and its allies as their biggest financial backers.
China, which is keen to extend its influence in the region, has limited voting power over these existing banks despite being the world’s second-largest economy.
The AIIB, launched in Beijing at a ceremony attended by Chinese finance minister Lou Jiwei and delegates from 21 countries including India, Thailand and Malaysia, aims to give project loans to developing nations. China is set to be its largest shareholder with a stake of up to 50 percent.
Those taking part include regional powers India and Qatar as well as Uzbekistan, Kazakhstan and Pakistan.
Those countries opting out include close US allies South Korea and Australia.
China proposed the bank a year ago and has said it will provide most if not all of the initial $50 billion in capital.
The bank aims to fund the construction of roads, railways, power plants and telecommunications networks that global finance officials say are needed to keep the region’s economies growing.
