The BRICS group of emerging economies has today launched its New Development Bank (NDB) in Shanghai, according to BBC News.
The bank is backed by Brazil, Russia, India, China and South Africa – collectively known as BRICS countries.
The bank is seen as an alternative to the World Bank and the International Monetary Fund, although the group says it is not a rival.
“Our objective is not to challenge the existing system as it is but to improve and complement the system in our own way,” NDB President Kundapur Vaman Kamath said.
The bank is to start out with a capital of $50bn though the amount is to be doubled in the coming years. The bank’s biggest contributor is China.