China establishes rival to World Bank 12/25/15.

China establishes rival to World Bank
The Asian Infrastructure Investment Bank (AIIB) has been formally established
China's Finance Minister Lou Jiwei said the bank's establishment was ratified by the 17 funding members Photo: AFP/Getty

By Agencies

12:21PM GMT 25 Dec 2015

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The China-backed Asian Infrastructure Investment Bank (AIIB), viewed by some as a rival to the World Bank and Asian Development Bank, was formally established on Friday, according to a statement issued by Beijing.

The United States and Japan - the world's largest and third-largest economies, respectively - have notably declined to join the bank, which is expected to begin operations early next year, though others such as Australia, Germany and Britain will take part.

The bank's establishment came after 17 funding members of the AIIB, which account for , ratified an agreement on the bank, state television quoted Finance Minister Lou Jiwei as saying.

"The AIIB is legally established as the Articles of Agreement take effect today,” said Mr Lou said.


"Plans for economic development have nothing to do with power and dominance but with peaceful co-operation across Asia."

[link to www.telegraph.co.uk]