In financial economics, a financial institution is an institution that provides financial services for its clients or members.

Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions are regulated by the government. Broadly speaking, there are three major types of financial institutions:
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1. Depositary Institutions : Deposit-taking institutions that accept and manage deposits and make loans, including banks, building societies,credit unions, trust companies, and mortgage loan companies 2. Contractual Institutions : Insurance companies and pension funds; and 3. Investment Institutes : Investment Banks, underwriters, brokerage firms.

The African Development Bank Group (AfDB) is a multilateral development finance institution established to contribute to the economic development and social progress of African countries. The AfDB was founded in 1964 and comprises three entities: The African Development Bank, the African Development Fund and the Nigeria Trust Fund. The AfDBs mission is to fight poverty and improve living conditions on the continent through promoting the investment of public and private capital in projects and programs that are likely to contribute to the economic and social development of the region. Retreieved on 2012, November 15 from [1]. The AfDB is a financial provider to African governments and private companies investing in the regional member countries (RMC). WHile it was originally headquartered in Abidjan, Cte d'Ivoire, the Bank's headquarters moved to Tunis, Tunisia, during the civil war in Cte d'Ivoire.

Formation Type Legal status

August 4, 1963 International organization Treaty

Purpose/focus Regional development Membership President 78 countries Donald Kaberuka

Main organ

Board of Executive Directors

Functions
The primary function of AfDB is making loans and equity investments for the socio-economic advancement of the RMC. Second, the bank provides technical assistance for development projects and programs. Third, it promotes investment of public and private capital for development. Fourth, the bank assists in organizing the development policies of RMCs. The AfDB is also required to give special attention to national and multinational projects which are needed to promote regional integration

Group entities
The African Development Bank Group has two other entities: the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). [edit]African

Development Fund
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Established in 1972, the African Development Fund started operations in 1974. It provides development finance on concessional terms to low-income RMCs which are unable to borrow on the non-concessional terms of the AfDB. In harmony with its lending strategy, poverty reduction is the main aim of ADF activities. Twenty-four non-African countries along with the AfDB constitute its current membership. The largest ADF shareholder is the United States with approximately 6.5 percent of the total voting shares, followed by Japan with approximately 5.4 percent. The ADFs general operations are decided by a Board of Directors, six of which are appointed by the non-African member states and six designated by the AfDB from among the bank's regional Executive Directors. The ADFs sources are mainly contributions and periodic replacements by non-African member states. The fund is usually replenished every three years, unless member states decide otherwise. The total donations, at the end of 1996, amounted to $12.58 billion. The ADF lends at no interest rate, with an annual service charge of 0.75%, a commitment fee of 0.5%, and a 50-year repayment period including a 10-year grace period. The tenth United [2] Kingdom replenishment of the ADF was in 2006. [edit]Nigeria

Trust Fund

The Nigeria Trust Fund (NTF) was established in 1976 by the Nigerian government with an initial capital of $80 million. The NTF is aimed at assisting in the development efforts of the poorest AfDB members. The NTF uses its resources to provide financing for projects of national or regional importance which further the economic and social development of the low-income RMCs whose economic and social conditions require financing on non-conventional terms. In 1996, the NTF had a total resource base of $432 million. It lends at a 4% interest rate [3] with a 25-year repayment period, including a five-year grace period.

The Asian Development Bank (ADB) is a regional development bank established on 22 August 1966
to facilitate economic development of countries in Asia. The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific(UNESCAP, formerly known as the United Nations
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Economic Commission for Asia and the Far East) and non-regional developed countries. From 31 members at its establishment, ADB now has 67 members - of which 48 are from within Asia and the Pacific and 19 outside. ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with member's capital subscriptions. At present, both the United States and Japan hold 552,210 shares, the largest proportion of shares at 12.756 percent each.
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[2]

The Inter-American Development Bank (IADB or IDB or BID) is the largest source of development
financing for Latin America and the Caribbean. Established in 1959, the IDB supports Latin American and Caribbean economic development, social development and regional integration by lending to governments and government agencies, including State corporations.
[1]

Inter-American Development Bank

Abbreviation Type Headquarters

IDB/BID International organization 1300 New York AvenueNW Washington, D.C. United States 48 countries

Membership

Official languages English, Spanish, French, Portuguese President Main organ Luis Alberto Moreno Board of Governors

Staff

About 2,000

European Bank for Reconstruction and Development

Founded in 1991, the European Bank for Reconstruction and Development (EBRD) uses the tools of investment to help build market economies and democracies in 30 countries from central Europe to central Asia. Its mission was [1] to support the formerly communist countries in the process of establishing their private sectors. By the seventh meeting, representatives of 40 nations and two European institutions had reached agreement on the bank's charter, [2] its initial size,and the distribution of power among shareholders. Headquartered in London, the EBRD is now owned by 63 countries and two intergovernmental instituitions. Despite its public sector shareholders, it invests mainly in private enterprises, usually together with commercial partners. EBRD provides project financing for banks, industries and businesses, both new ventures and investments in existing companies. It also works with publicly owned companies to support privatization, restructuring state-owned firms and improvement of municipal services. The EBRDs mandate stipulates that it must only work in countries that are committed to democratic principles. The EBRD is directed by its founding agreement to promote, in the full range of its activities, environmentally sound and sustainable development.

World War II
The World Bank is an international financial institution that provides loans[3] to developing countries for capital
programs. The World Bank's official goal is the reduction of poverty. According to the World Bank's Articles of Agreement (as amended effective 16 February 1989), all of its decisions must be guided by a commitment to promote foreign [4] investment, international trade, and facilitate capitalinvestment. The World Bank differs from the World Bank Group, in that the World Bank comprises only two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development [5] Association (IDA), whereas the latter incorporates these two in addition to three more: International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID).

The International Monetary Fund (IMF) is an international organization that was created on July 22,
1944 at the Bretton Woods Conferenceand came into existence on December 27, 1945 when 29 countries signed the Articles of Agreement. It originally had 45 members. The IMF's stated goal was to stabilize exchange rates and assist the reconstruction of the worlds international payment system post-World War II. Countries contribute money to a pool through a quota system from which countries with payment imbalances can borrow funds temporarily. Through this activity and others such as surveillance of its members' economies and policies, the IMF works to
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improve the economies of its member countries. The IMF describes itself as an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. The organization's stated objectives are to promote international economic cooperation, international trade, employment, and exchange rate stability, including by making financial resources available to member countries to meet balance of payments needs.
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Its headquarters are in Washington, D.C., United States.

Regional development banks

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 Nationsregional groupings, including the Inter-American Development Bank, the Asian Development Bank; the African Development Bank; and the European Bank for Reconstruction and Development.

The Role of International Financial Institutions in International Humanitarian L aw:

International financial institutions are increasingly involved in conflict situations and countries in which violations of international humanitarian law are widespread and devastating to the civilian population and the countries economic prospects. Many argue that structural and political concerns pose obstacles to the development of a role for IFIs in promoting adherence to and enforcement of international humanitarian law. Others, however, suggest that IFIs are well placed to make some contribution to the implementation and enforcement of humanitarian law. In addition, factoring humanitarian law violations into IFI decision-making processes can actually be essential to the effective implementation oftheir own mandates. Any policy an IFI enacts in countries marked by conflict and atrocities will send a message about the institutions level of tolerance for or abhorrence of humanitarian law violations. Because an IFIs influence makes the very act of engagement, even if on the basis of economic considerations alone, just as symbolic as that of disengagement, placing thefinancial weight of the IFIs behind international humanitarian law can help to dissuade states and other actors from committing atrocities for fear of losing muchneeded financialassistance. In addition, atrocities can have significant and direct economic effects that IFIs should take into consideration, including disrupting the regular functioning of the economy and hindering the reconstruction of the economy after the conflict. A role for IFIs in the implementation and enforcement of international humanitarian law does not mean that they must always withdraw or reduce funding; rather, it requires that IFIs

consider the impact of humanitarian law violations as a factor in making policy and decisions. Existing practice demonstrates that IFIs already do occasionally incorporate these concerns into their analyses and suggests several potential opportunities for IFIs to make a contribution in this area: examining the links between violations of internationalhumanitarian law and prospects for economic growth and stability; sharing information with other international and multilateral organizations; supporting UN Security Council decisions and operations taken under Chapter VII; adopting formal conditionality policies; and applying informal conditionality in the course of daily operations.