MODULE 2
PRESENTED BY ,
EASWARY KRISHNA K
EVELIN ANTONY
DIVYA
INTERNATIONAL FINANCE FUNCTION
FINANCIAL INSTITUTIONS FOR INTERNATIONAL TRADE
 IFI refers to financial institutions that have been
established by more than one country.


 The most prominent IFIs are creations of
multiple nations although some bilateral
financial institutions.
INTERNATIONAL FINANCIAL INSTITUTIONS
World Bank Group (WBG)
International Beck for Reconstruction and Development (BRD)
• International Development Association (IDA)
International Finance Corporation (IFC)
Mihilateral Investment Gate Agency (MIGA) International Centre for
Settlement of Invest Disputes (ICSID)
International Monetary Fund (IMF)
Regional development bank, such as Afnem Development Bank (ADB)
Aman Development Bank (ADB)
Inter-American Development (ADB)
Bank of the South
WORLD BANK
An international financial institution (IFI) is a financial institution that has
been established (or chartered) by more than one country, and hence is
subject to international law. Its owners or shareholders are generally
national governments, although other international institutions and other
organizations occasionally figure as shareholders. The most prominent IFIs
are creations of multiple nations, although some bilateral financial
institutions exist and are technically IFIs. The best known IFIs were
established after World War II to assist in the reconstruction of Europe and
provide mechanisms for international cooperation in managing the global
financial system.
OBJECTIVES OF WORLD BANK
INTERNATIONAL MONETARY FUND
The IMF was established in 1944 in the aftermath of
the Great Depression of the 1930s. 44 founding
member countries sought to build a framework for
international economic cooperation. Today, its
membership embraces 190 countries, with staff
drawn from 150 nations.
The IMF is governed by and accountable to those
190 countries that make up its near-global
membership.
FUNCTIONS OF IMF
1. It gives advice to the member countries on economic and
monetary matters.
2 It had created a monetary reserve fund.
3. By lending foreign currencies to member countries against their
national currencies, the Fund helps them to eliminate short-term
disequilibrium in their balance of payments.
.4. It stabilizes the foreign exchange rate.
5. it reduces tariffs and other trade restrictions among the member
countries.
6. It conducts research studies and publishes the reports.
7. It provides a machinery for international consultancy.
8.It conducts short-term training courses on fiscal and monetary
policies .
REGIONAL DEVOLEPMENT BANK
The regional development banks consist of several regional institutions that have
functions similar to the World Bank group's activities, but with particular focus
on a specific region. Shareholders usually consist of the regional countries plus
the major donor countries. The best-known of these regional banks cover regions
that roughly correspond to United Nations regional groupings, including the
Inter-American Development Bank, the Asian Development Bank; the African
Development Bank; the Central American Bank for Economic Integration; and the
European Bank for Reconstruction and Development. The Islamic Development
Bank is among the leading multilateral development banks. IsDB is the only
multilateral development bank after the World Bank that is global in terms of its
membership. 56 member countries of IsDB are spread over Asia, Africa, Europe
and Latin America.
FUNCTIONS OF REGIONAL DEVOLEPMENT BANK
To Promote and Develop Small-Scale Industries (SSI).
To Finance the Development of Housing Sector.
To Develop the Large-Scale Industries (LSI).
To help in Agricultural and Rural Development.
To enhance the Foreign Trade of India.
To help to Review (Cure) Sick Industrial Units.