China's top legislature has ratified an agreement on the founding of the BRICS New Development Bank. Approval was given at the bimonthly session of the National People's Congress Standing Committee that ends today (Wednesday).
The new institution is a multilateral development bank operated by the BRICS states. The founding agreement was signed by all five BRICS members last year and takes effect after the members all deposit instruments of acceptance, ratification or approval.
India and Russia have already ratified the agreement. Membership in the Shanghai-based bank is open to all United Nations members.
For more about the bank, let's hear from Shi Yaobin, China's vice finance minister.
"The New Development Bank will mainly work in loan, guarantee, equity investment and other financial tools. It will provide both financial and technical supports to public and private projects. The purpose of the bank is to provide resources to infrastructure and sustainable projects for BRICS members, emerging economies and developing countries. It will act as a supplement to the existing multilateral and regional financial institutions, to boost global growth and development," he said.