BANKING NEWS SOUTH AFRICA
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South African
News
60
SA BANKER
Edition 1
BRICS Commits to
Development Bank
LEADERS OF THE FIVE-NATION BRICS bloc have directed their finance ministers
to work towards forming a Development Bank aimed at catering for the needs of
developing countries.
In a declaration issued in New Delhi after their fourth summit, leaders of Brazil,
Russia, India, China, and South Africa said the envisaged bank would mobilise
resources for infrastructure and sustainable development projects in BRICS and
other emerging economies. The five leaders have mandated their finance ministers
to examine the feasibility and viability of such an initiative and report back at the
next summit.
A BRICS-led development bank would seek to encourage investment in a more
sustainable and productive manner for the financing of infrastructure. The plan is
also seen as a potential counter-weight to other multilateral lenders such as the
World Bank and Asian Development Bank.
‘We call for further international financial regulatory oversight and reform,
strengthening policy co-ordination and financial regulation and supervision
co-operation, and promoting the sound development of global financial markets
and banking systems,’ reads the declaration.