A new player entered the global financial arena. The Asian Infrastructure Investment Bank (AIIB) has started operating. A lavish inaugural ceremony on 16 January, 2016 marked the bank’s opening for business. Delegations from 57 countries attended the event. Jin Liqun, former Vice Minister of Finance of the People's Republic of China, became the AIIB President, while current China’s Minister of Finance Lou Jiwei was elected as the council chairman. China’s President Xi Jinping also visited the event. China invested $50 million in the AIIB to support the founding countries and infrastructure projects.
The AIIB was created as a rival to the US-led World Bank. On 24 October, 2014, twenty-one countries signed a Memorandum of Understanding (MOU). The authorized capital stock of the new development bank totals $100 billion, while the initial capital had been $50 billion. China will provide the largest share of funds. The AIIB is headquartered in Beijing. The bank plans to give loans for infrastructure project development in the Asian region providing guarantees and technical help.
China, India, and Russia are the three largest shareholders, with a voting share of 26.06%, 7.5%, and 5.92%, respectively. Vietnam, the Philippines, Qatar, Switzerland, and the United Kingdom are among the AIIB founding members.
