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FIN 004 Module 2 PPT Part 1

Transnational banks operate globally while the World Bank, IMF, and Asian Development Bank were established as international financial institutions owned by member governments. The World Bank aims to end poverty and promote prosperity by 2030 through development projects and loans. The IMF works to ensure stability of the international monetary system through economic surveillance, lending, and capacity development. The Asian Development Bank was created to promote economic and social growth in Asia through loans, technical assistance, and other financing.

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57 views

FIN 004 Module 2 PPT Part 1

Transnational banks operate globally while the World Bank, IMF, and Asian Development Bank were established as international financial institutions owned by member governments. The World Bank aims to end poverty and promote prosperity by 2030 through development projects and loans. The IMF works to ensure stability of the international monetary system through economic surveillance, lending, and capacity development. The Asian Development Bank was created to promote economic and social growth in Asia through loans, technical assistance, and other financing.

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lianna marie
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INTERNATIONAL FINANCIAL INSTITUTIONS

TRANSNATIONAL BANKS

Transnational banks are international financial institutions which operates in many countries all over the
world.

Ex. Hongkong and Shanghai Banking Corporation, Bank of America, City Bank, and Standard
Chartered Bank.

WB-IMF and ADB

 World Bank (WB)


 International Monetary Fund (IMF)
 Asian Development Bank (ADB)
 Owned mostly by the governments of the rich countries. The US is the biggest shareholder of all
the three international financial institutions.

WORLD BANK

 Created in 1944
 Primarily, the main objective of WB was to help reconstruct Western Europe which had been
destroyed by World War II.
 Later on, shifted its goals to funding development projects of the Third World countries like the
Philippines.
 Established in 1944, the World Bank Group is headquartered in Washington, D.C. We have more
than 10,000 employees in more than 120 offices worldwide.
 The World Bank Group has set two goals for the world to achieve by 2030:
 End extreme poverty by decreasing the percentage of people living on less than $1.90 a
day to no more than 3%
 Promote shared prosperity by fostering the income growth of the bottom 40% for every
country
 The World Bank is a vital source of financial and technical assistance to developing countries
around the world. We are not a bank in the ordinary sense but a unique partnership to reduce
poverty and support development. The World Bank Group comprises five institutions managed by
their member countries.
1. The International Bank for Reconstruction and Development
2. The International Development Association
3. The International Finance Corporation
4. The Multilateral Investment Guarantee Agency
5. The International Centre for Settlement of Investment Disputes

INTERNATIONAL MONETARY FUND

 Created in 1945
 Its main goal has been to ensure an international monetary system that will promote
international free trade.
 Created in 1945, the IMF is governed by and accountable to the 189 countries that make up
its near-global membership.
 Its main goal has been to ensure an international monetary system that will promote
international free trade.
 The IMF's primary purpose is to ensure the stability of the international monetary system
—the system of exchange rates and international payments that enables countries (and their
citizens) to transact with each other. The Fund's mandate was updated in 2012 to include all
macroeconomic and financial sector issues that bear on global stability.

What IMF Do

The IMF’s fundamental mission is to ensure the stability of the international monetary system. It does so
in three ways:

 keeping track of the global economy and the economies of member countries; (Economic
Surveillance)

 lending to countries with balance of payments difficulties; and (Lending)

 giving practical help to members like modernize their economic policies and institutions, and train
their people.. (Capacity Development)

ASIAN DEVELOPMENT BANK

 Started its operations in 1966


 The main role of the bank is to help promote the economic and social growth of its developing
member countries by lending funds and extending technical assistance.
 A financial institution that would be Asian in character and foster economic growth and
cooperation in one of the poorest regions in the world
 ADB assists its members, and partners, by providing loans, technical assistance, grants, and
equity investments to promote social and economic development.
 ADB is composed of 68 members, 49 of which are from the Asia and Pacific region.

 Strategy 2030
- ADB in partnership with member governments, independent specialists and other
financial institutions is focused on delivering projects in developing member countries
that create economic and development impact.
- As a multilateral development finance institution, ADB provides:
 Loans
 technical assistance
 Our clients are our member governments, who are also our shareholders. In addition, we provide
direct assistance to private enterprises of developing member countries through equity
investments and loans.
 ADB maximizes the development impact of its assistance by
 facilitating policy dialogues,
 providing advisory services, and
 mobilizing financial resources through cofinancing operations that tap official, commercial,
and export credit sources

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