The following are the international financial institutions : § African Development Bank
§ Asian Development Bank
§ Caribbean Development Bank
§ European Bank for Reconstruction and Development
§ Inter-American Development Bank
§ The World Bank Group (IBRD/IDA)
IFIs provide financial and advisory services apart from making decisions on global finance, governance and development policies. IFIs provide grants/loans of $ 40 billion per year to middle income countries and $15 billion per year to low income countries. The objectives of IFIs have always been in the areas of poverty removal, economic growth and in protection of environment. According to the World Bank’s new President, one of the major area of risks confronting IFIs is corruption that is standing as an obstacle for development and it is existing all over the world in every nation. Other areas of risks are political instability, fluctuations in capital markets and lack of governance in poor nations. In spite of encouraging private sector participation in building infrastructures, IFIs continue to handle risks in case of stoppage of projects or due to political imbalances. The interaction of IFIs with various governments of nations, regional banks for managing exchange rate of currencies for considering a decision for making countries eligible to receive loans and grants, examining of banking and industrial policies, budgetary constraints are some of the other risk prone areas that IFIs are confronted with in development of trade and commerce in terms of global finance and in economy expansion of various nations. Reforms in policies of IFIs to handle such risks in order to provide global stability is the emerging need to be worked out by IFIs.
Reference IFI, Adapting to world of private capital flows Accessed on 29 March, 2007