BRICS nations to form $100 billion development bank as an alternative to World Bank, IMF

The new $100 billion bank reflects the growing influence of the BRICS, which account for almost half the world's population and about one-fifth of global economic output. BRICS comprise of Brazil, Russia, India, China and South Africa. This bank is a step toward reshaping the Western-dominated international financial system in the global financial order centered on the International Monetary Fund and the World Bank.

BRICS have also set up a $100 billion currency reserves pool to help countries forestall short-term liquidity pressures.

The bank will begin with a subscribed capital of $50 billion divided equally between its five founders, with an initial total of $10 billion in cash put in over seven years and $40 billion in guarantees. It is scheduled to start lending in 2016 and be open to membership by other countries, but the capital share of the BRICS cannot drop below 55 percent. Other key points -

1. The Bank will be headquartered in Shanghai.
2. It will have an initial authorized capital of $100 billion.
3. The presidency of the bank will change hands every five years.
4. The first president of the bank will be from India.

Leaders at sixth BRICS Summit in Brazil include - Indian Prime Minister Narendra Modi, Brazilian President Dilma Rousseff, Russian President Vladimir Putin, Chinese President Xi Jinping and South African President Jacob Zuma.