All about World Bank and International Monetary Fund


1) WORLD BANK

World Bank Logo

An International financial institution that provides loans to developing countries for growth.
MOTTO: Working for a world free of poverty
HEADQUARTERS: WASHINGTON DC, USA
PRESINDENT: JIM YONG KIM

It consists of five organisations:
a: International Bank for Reconstruction and Development:
For middle income countries
IBRD was developed in 1944 to help Europe rebuild after second world war. It helps the countries reduce poverty, promote economic growth and build prosperity.

b: International Development Association:
For Poorest Countries
It provides loans and grants for programs that boost economic growth, reduce inequality

c: International Finance Corporation:
It offers investment, advisory and asset management services to encourage private sector development in developing countries.

d: Multilateral Investment Guarantee Agency:
It promotes FDI into developing countries

e: International Centre for settlement of Disputed:
For Settlement of investment disputes among nations

2) INTERNATIONAL MONETARY FUND

IMF

An organization working to foster monetary cooperation, secure financial stability, facilitate international trade, sustain economic growth in the world.
HEADQUARTERS: WASHINGTON DC, USA
PRESIDENT: CHRISTINE LAGARDE
The main function is to ensure stability of internal monetary system i.e. exchange rates and the international payments.

3) DIFFERENCE BETWEEN BOTH:

a. You go to IMF for stability while WB for growth.
b. IMF deals with all the issues related to financial sector while WB works to lessen poverty and long term development of a country.
c. You go to IMF when you are so messed up that your country’s currency is dropping while you go to WB when you want to build a dam or powerplant.
d. IMF is a fund or pool of money while WB is a bank means it borrows money and then lends to needy countries at a nominal rate.

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