Basic Concepts
What is the main goal of international financial institutions (IFIs)?
To support economic development and financial stability globally
What is a multilateral development bank (MDB)?
A bank created by multiple countries to fund development projects
What is a Development Financial Institution (DFI)?
A financial institution offering non-commercial funding for development
What does IsDB stand for?
Islamic Development Bank
What does LIBOR stand for?
London Interbank Offered Rate
Who typically owns IFIs?
National governments
What are Bretton Woods institutions?
They established after World War II for reconstruction and global cooperation
Who usually owns DFIs?
Governments or nonprofit organizations
Which bank focuses on Asia and the Pacific?
Asian Development Bank
What has replaced LIBOR as of 2023?
Secured Overnight Financing Rate
What types of support do IFIs offer?
Loans, grants, and technical assistance
What makes a bilateral development bank different from a multilateral one?
It's operated by one country for development in another
Name two types of development banks?
Multilateral development banks, national development banks
What does the World Bank focus on?
Long-term loans for infrastructure and social development
Give one criticism of IFI loans?
They may increase a country’s debt burden
How are IFIs funded?
By combining financial resources of member countries
Name one function of regional development banks?
Financing projects specific to their region
What is a community development bank?
A bank that funds projects in low-income communities
What is the International Monetary Fund's primary role?
Providing short-term financial help and economic reform advice
What are “loan conditions”?
Requirements like reforms or tax changes attached to loans
What led to the creation of IFIs?
The need to address economic crises and promote global development
Which financial institutions are formed by neighboring countries to support shared regional goals and projects?
Regional financial institutions that promote cooperation in areas of mutual interest, such as central banks and development banks
What distinguishes DFIs from commercial banks?
They provide risk capital for projects that commercial banks avoid
Name any two institutions created under Bretton Woods?
IMF and World Bank
Name one negative consequence of IFI activities?
Favoring developed countries and transnational business over local needs