Asian Infrastructure Investment Bank(AIIB)

RELEVANCE – UPSC GS PRELIMS & GS MAINS – II (Important International institutions, agencies and fora – their structure, mandate.)

First go through the text (given after the questions) and then attempt the questions.

PRACTICE QUESTIONS

QUES 1 . Consider the following statements with respect to Asian Infrastructure Investment Bank (AIIB)

1 .  The capital of the bank is $100 billion, which is more than the capital of the Asian Development Bank.

2 . It is headquartered in New Delhi.

Which among the above statements is/are correct?

a . 1 only

b . 2 only

c . Both 1 and 2

d . Neither 1 nor 2

Answer –d

QUES 2 . Consider the following statements with respect to Asian Infrastructure Investment Bank (AIIB)

1 . The bank was proposed by India in 2013.

2 . It has 86 approved members from around the world.

3 . It is seen as a potential rival to World Bank and IMF.

Which among the above statements is/are correct?

a . Only 2

b . Only 3

c . 1 & 2

d . 2 & 3

Answer –d

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Reasons for being in news

The third Annual Meeting of AIIB is being organized by Government of India, in collaboration with Government of Maharashtra at Mumbai during 25-26 June 2018.

About Asian Infrastructure Investment Bank (AIIB)

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank that aims to support the building of infrastructure in the Asia-Pacific region.

Headquarter

Headquartered in Beijing

Members

86 approved members from around the world.

The founding members of the Asian Infrastructure Investment Bank

Background

The bank was proposed by China in 2013 and the initiative was launched at a ceremony in Beijing in October 2014.

The bank started operation on 25 December 2015 .

Capital

The capital of the bank is $100 billion, equivalent to ​2⁄3 of the capital of the Asian Development Bank and about half that of the World Bank .

While 75% of the capital is from Asia, several non-Asian regions like Europe, North America, some East African and Latin American countries have also joined the bank as members.

Unlike most other multilateral development banks set up by advanced economies, AIIB is the first major multilateral development bank where principal contributors are the borrowing members themselves.

Rival to World Bank and IMF

It received the highest credit ratings from the three biggest rating agencies in the world, and is seen as a potential rival to World Bank and IMF.