AN OVERVIEW OF THE GLOBAL FINANCIAL SYSTEM (TOPIC 03) Main Reference International Centre for Education in Islamic Finance. (2006).Islamic Financial Institutions and Markets..Kuala Lumpur: INCEIF
TOPICS Introduction The International Monetary Fund The World Bank The Regional Development Banks The Bank for International Settlements The European Monetary System The Islamic Development bank Summary
THE WORLD BANK Introduction Dates back to 1944, but actually born in 1946 Richer nations contribute through taxes It has five sections The International Bank for Reconstruction and Development (IBRD)
THE WORLD BANK The International Development Association (IDA) The international Finance Corporation (IFC) The Multilateral Investment Guarantee agency (MIGA) The International Centre for Settlement of Investment Disputes (ICSID)
THE WORLD BANK Objectives Eradication of Poverty Enhance growth and Development
THE WORLD BANK The Role of IBRD Driven by developments rather than profit maximization
THE WORLD BANK Current Operations Issue debt securities Match currency of its liabilities to its assets Issue bonds for comparative fund cost advantage Enters into derivative transaction Loans to IFC
THE WORLD BANK Eligibility to borrow Usually Middle Income countries Lending Lending Principles Credit worthiness Prevailing market conditions
THE WORLD BANK Lending Cycle Lending Instrument 1. Investment 2. Development Policy It offers a product mix as well Deferred Drawdown option
THE WORLD BANK Guarantees 1. Partial risk 2. Partial Credit 3. Policy bases 4. Enclave
THE WORLD BANK Other activities 1. Consultation 2. Research and Training 3. Trust fund administration 4. Investment management
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