The New Development Bank, also known as the BRICS bank, has opened for business in China's economic hub of Shanghai.
The bank is operated by the five emerging BRICS economies: Brazil, Russia, India, China and South Africa.
Indian former banker Kundapur Vaman Kamath has assumed the post of first president.
China's Finance Minister Lou Jiwei attended the opening ceremony Tuesday morning, along with Kamath and Shanghai Mayor Yang Xiong. After the ceremony, Lou said the NDB will supplement the existing international financial system in a healthy way and explore innovations in governance models.
Lou’s sentiment was echoed by Kamath, who added that the NDB will set up a "hotline" with the China-led Asian Investment Infrastructure Bank, which will be used to discuss business policy and developing project preparations.
Kamath said the NDB plans to issue its first loans in April next year.
The NDB, initiated in 2013, is aimed at fostering greater financial and development cooperation among the five emerging markets.