Professional Documents
Culture Documents
Introduction
The International Bank for Reconstruction and Development was created in 1944 to help Europe rebuild
after World War II. Today, IBRD provides loans and other assistance primarily to middle income
countries.
IBRD is the original World Bank institution. It works closely with the rest of the World Bank Group to
help developing countries reduce poverty, promote economic growth, and build prosperity.
IBRD is owned by the governments of its 188 member countries, which are represented by a 25-member
board of 5 appointed and 20 elected Executive Directors.
The institution provides a combination of financial resources, knowledge and technical services, and
strategic advice to developing countries, including middle income and credit-worthy lower income
countries. Specifically, IBRD:
Supports long-term human and social development that private creditors do not finance.
Preserves borrowers' financial strength by providing support in times of crisis, when poor people
are most adversely affected.
Promotes key policy and institutional reforms (such as safety net or anti-corruption reforms).
Creates a favorable investment climate to catalyze the provision of private capital.
Facilitates access to financial markets often at more favorable terms than members can achieve on
their own.
Governance Structure
Management believes that effective financial risk management is critical for its overall operations.
Accordingly, the risk management governance structure is designed to manage the principal risks IBRD
assumes in its activities. The risk management governance structure supports Management in its oversight
function, particularly in coordinating different aspects of risk management and in connection with risks
that are common across functional areas.
General Governance
IBRDs decision-making structure consists of the Board of Governors, Executive Directors, and the
President, Management and staff. The Board of Governors is the highest decision-making authority.
Governors are appointed by their member governments for a five-year term, which is renewable. The
Board of Governors may delegate authority to the Executive Directors to exercise any of its powers,
except for certain powers enumerated in IBRDs Articles.
Board Membership
In accordance with the Articles, Executive Directors are appointed or elected every two years by their
member governments. The Board currently has 25 Executive Directors, who represent all 188 member
countries. Executive Directors are neither officers nor staff of IBRD. The President is the only member of
the Board from management, and he serves as a non-voting member and as Chairman of the Board.
The Board has established several committees. These include:
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Audit Committee
Budget Committee
Committee on Development Effectiveness
Committee on Governance and Executive Directors Administrative Matters
Ethics Committee
Human Resources Committee
The Board and its committees are in continuous session at the main IBRD offices in Washington DC, as
business requires. Each committees terms of reference establishes its respective roles and
responsibilities. As committees do not vote on issues, their role is primarily to serve the Board in
discharging its responsibilities. The Board is required to consider proposals made by the President on
IBRDs loans and guarantees and on other policies that affect its general operations. The Board is also
responsible for presenting to the Board of Governors, at the Annual Meetings, audited accounts, an
administrative budget, and an annual report on operations and policies and other matters.
Audit Committee
The Audit Committee consists of eight Executive Directors. Membership in the Committee is determined
by the Board, based on nominations by the Chairman of the Board, following informal consultation with
Executive Directors.
Organizational Structure
The office of the Chief Risk Officer (CRO) is responsible for leading the risk management function at
IBRD, with primary oversight responsibility of financial and operational risks. In addition, the CRO
works closely with IFC, MIGA, and IDAs management to review, measure, aggregate, and report on
risks and share best practices. The CRO also helps enhance cooperation between the entities and increase
knowledge sharing in the risk management function. The following three departments report directly to
the CRO:
The Credit Risk Department identifies, measures, monitors, and manages country credit risk
faced by IBRD. By agreement with the Board, the individual country credit risk ratings are not
shared with the Board and are not made public. In addition, this department assesses loan
portfolio risk, determines the adequacy of provisions for losses on loans and other exposures, and
monitors borrowers that are vulnerable to crises in the near term. These reviews are taken into
account in determining the overall country programs and lending operations, and they are
included in the assessment of IBRDs capital adequacy. Furthermore, whenever a new financial
product is being considered for introduction, this department reviews any implications for country
credit risk.
The Market and Counterparty Risk Department is responsible for market, liquidity, and
counterparty credit risk oversight, assessment, and reporting. It does these in coordination with
IBRDs financial managers responsible for the day-to-day execution of trades for the liquid asset
and derivatives portfolios within applicable policy and guideline limits. The departments
responsibilities include establishing and maintaining guidelines, volume limits, and risk oversight
processes to facilitate effective monitoring and control; it also provides reports to the Audit
Committee and the Board on the extent and nature of risks, risk management, and oversight. The
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IBRDs administration is composed of the Board of Governors, the Executive Directors, the President,
other officers, and staff. All the powers of IBRD are vested in the Board of Governors, which consists of
a Governor and an Alternate Governor appointed by each member of IBRD, who exercise the voting
power to which that member is entitled. Each member is entitled to an equal number of basic votes
(representing 5.55 percent of the total voting power in aggregate) plus one vote for each share held. The
Board of Governors holds regular annual meetings. There are 25 Executive Directors. Five of these are
appointed, one by each of the five members having the largest number of shares of capital stock at the
time of such appointment (the United States, Japan, China, Germany, and France and the United
Kingdom (tied for fifth), and the remainder are elected by the Governors representing the other members.
The Board of Governors has delegated to the Executive Directors authority to exercise all the powers of
IBRD except those reserved to the Governors under the Articles. The Executive Directors function as a
board, and each Executive Director is entitled to cast the number of votes of the member or members by
which such person is appointed or elected.
The following is an alphabetical list of the Executive Directors of IBRD and the member countries by
which they were appointed or elected:
P.T.O
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IBRDs Services
The World Bank Group works with middle income countries simultaneously as clients, shareholders, and
global actors. As this partnership evolves, IBRD is providing innovative financial solutions, including
financial products (loans, guarantees, and risk management products) and knowledge and advisory
services (including on a reimbursable basis) to governments at both the national and sub national levels.
IBRD finances projects across all sectors and provides technical support and expertise at various stages of
a project.
IBRDs financial products and services help countries build resilience to shocks by facilitating access to
products that mitigate the negative impact of currency, interest rate, and commodity price volatility,
natural disasters and extreme weather.
Unlike commercial lending, IBRDs financing not only supplies borrowing countries with needed
financing, but also serves as a vehicle for global knowledge transfer and technical assistance.
Advisory services in public debt and asset management help governments, official sector institutions, and
development organizations build institutional capacity to protect and expand financial resources.
IBRD supports government efforts to strengthen not only public financial management, but to also
improve the investment climate, address service delivery bottlenecks, and other policy and institutional
actions.
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The World Bank Group is following a new approach to country engagement - the Country Partnership
Framework (CPF). This new approach aims to make our country-driven model more systematic,
evidence-based, selective and focused on the goals of ending extreme poverty and increasing shared
prosperity in a sustainable manner. The CPF takes the place of the Country Assistance Strategy (CAS)
and guides the Bank Group's support to a member country.
A Systematic Country Diagnostic (SCD) informs each new country partnership. The diagnostic
identifies the most important challenges and opportunities at the country level for reaching the corporate
goals. Consultations with a range of stakeholders informs the SCD process, from diagnostic through
completion.
How the new approach works?
Step 1: What are the biggest constraints to reducing poverty and increasing shared prosperity in a
sustainable way? A Systematic Country Diagnostic (SCD) uses data and analytic methods to support
country clients and World Bank Group teams in identifying the most critical constraints to, and
opportunities for, reducing poverty and building shared prosperity sustainably, while considering the
voices of the poor and the views of the private sector and other stakeholders.
Step 2: What are the most important contributions the World Bank Group can make? The Country
Partnership Framework (CPF) lays out the development objectives that WBG interventions expect to
help the country achieve and attendant program of indicative WBG interventions. The CPF objectives are
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Results
The World Bank has helped millions of poor people in middle income countries gain access to jobs,
markets, and social services; helped provide them with essential services such as water, electricity, and
roads; and worked with governments to improve governance and public sector management.
The International Bank for Reconstruction and Development (I.B.R.D) better known as the World Bank
was established at the same time as the International Monetary Fund to tackle the problem of International
investment in 1944. Since the I.M.F was designed to provide temporary assistance in correcting balance
of payments difficulties, there was need of an institution to assist long term investment purposes. Thus
I.B.R.D was established for promoting long term investment loans on reasonable terms.
The World Bank is an inter-government institution corporate informs the capital stock of which is entirely
owned by its member governments. Initially only nation there were members of the I.M.F could be
members of the World Bank but the restriction on membership was subsequently released.
Financial Performance
IBRDs principal assets are its loans to member countries. These are financed by IBRDs equity and
proceeds of borrowings from capital markets.
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GCI of $58.4 billion, of which $3.5 billion will be paid in. As of June 30, 2015, $39.6 billion has
been subscribed and $2.4 billion paid in.
SCI of $27.8 billion, of which $1.6 billion will be paid in. As of June 30, 2015, $22.2 billion has
been subscribed and $1.3 billion paid in.
SCI of $0.9 billion which represented the allocation of fully callable shares to certain DTCs and
for which a paid-in amount was not required. As of June 30, 2015, $0.8 billion was subscribed.
The U.S. dollar portion, which is freely available for use by IBRD.
NCPIC portion, usage of which is subject to certain restrictions under the Articles. This paid-in
component is also subject to Maintenance-Of-Value (MOV) requirements. For additional details
see the Notes to the Financial Statements: Note ASummary of Significant Accounting and
Related Policies.
Credit Risk
IBRD faces two types of credit risk: country credit risk and counterparty credit risk. Country credit risk is
the risk of loss due to a country not meeting its contractual obligations, and counterparty credit risk is the
risk of loss attributable to a counterparty not honoring its contractual obligations. IBRD is exposed to
commercial as well as non-commercial counterparty credit risk.
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