Banking Awareness: Bretton Woods Twins

Bretton woods twins mean the organisations i.e.The International Monetary Fund (IMF) set
up along with the World Bank after the Second World War to assist in the reconstruction of
war-ravaged countries. Leaders felt that financial stability was best achieved when
countries worked in an environment of interdependence.

The two organisations were agreed to be set up at a conference in Bretton Woods in the US.
Hence,they are known as the Bretton Woods twins.The Bretton Woods Conference, formally
known as the United Nations Monetary and Financial Conference,was the gathering of 730
delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton
Woods, New Hampshire, United States, to regulate the international monetary and financial
order after the conclusion of World War II.The conference was held from the 1st to 22nd of
July, 1944. Agreements were executed that later established the International Bank for
Reconstruction and Development (IBRD, which is part of today's (World Bank Group) and
the International Monetary Fund (IMF)
INTERNATIONAL MONETARY FUND

IMF was supposed to oversee and monitor the economic

performance of 188 member countries and warn them of any developing economic crisis.If
any crisis does develop and a country approaches IMF for help, the organisation chalks out
a recovery plan, which includes imposition of conditions for keeping the economies on a
particular path.
The organization's objectives stated in the Articles of Agreement are:
promote international economic cooperation,
international trade,
employment,
exchange-rate stability including by making financial resources available to
member countries to meet balance-of-payments needs.

When did India take the IMF bailout package?

The Indian government, faced with a balance of payments crisis in 1991, took a loan and
agreed to the reforms process. The liberalisation in the economy was partly a concomitant
of that need.
The IMF report is part of its mandate under Article IV of its constitution. The fund holds
consultations with finance ministries and central banks of each member countries annually
for its spring meeting in Washington.
The decision of the IMF to intervene in any country is based on the governing board's
decision. The voting rights are determined historically by the economic strength of the
countries. India, because of its rapidly growing economic clout, has demanded a re-drawing
of the voting rights, but that did not happen at the recent Singapore meeting.Instead, the
fund gave ad hoc voting right increase to China, South Korea, Turkey and Mexico. It has
promised a long-term revision in another two years.
WORLD BANK GROUP
World Bank group provides loans to developing countries for capital programs. The World
Bank is a component of the World Bank Group, and a member of the United Nations
Development Group.
The World Bank's official goal is the reduction of poverty. According to its Articles of
Agreement, all its decisions must be guided by a commitment to the promotion of foreign
investment and international trade and to the facilitation of capital investment.

The World Bank should not be confused with the United

Nations World Bank Group, a member of the United Nations Economic and Social Council
and a family of five international organizations that make leveraged loans to poor
countries:
International Bank for Reconstruction and Development (IBRD)
International Development Association (IDA)
International Finance Corporation (IFC)
Multilateral Investment Guarantee Agency (MIGA)
International Centre for Settlement of Investment Disputes (ICSID)
International Bank for Reconstruction and Development
IBRD is an international financial institution which offers loans to middle-income
developing countries. The IBRD is the first of five member institutions which compose the
World Bank Group and is headquartered in Washington, D.C., United States. It was
established in 1944 with the mission of financing the reconstruction of European nations
devastated by World War II.Following the reconstruction of Europe, the Bank's mandate

expanded to advancing worldwide economic development and eradicating poverty. The

IBRD provides commercial-grade or concessional financingto sovereign states to fund
projects that seek to improve transportation and infrastructure, education, domestic policy,
environmental consciousness, energy investments, healthcare, access to food and potable
water, and access to improved sanitation.
The International Development Association (IDA)
The IDA is an international financial institution which offers concessional loans and grants
to the world's poorest developing countries.The IDA is a member of the World Bank Group
and is headquartered in Washington, D.C., United States. It was established in 1960 to
complement the existing International Bank for Reconstruction and Development by
lending to developing countries which suffer from the lowest gross national income, from
troubled creditworthiness, or from the lowest per capita income.
International Finance Corporation (IFC)
The IFC was established in 1956 to support the growth of the private sector in the
developing world. The IFCs stated mission is to promote sustainable private sector
investment in developing countries, helping to reduce poverty and improve peoples
lives.IFC provides loans and equity financing,advice, and technical services to the private
sector. The IFC also plays a catalytic role, by mobilizing additional capital through loan
syndication and by lessening the political risk for investors, enabling their participation in a
given project.

The International Centre for Settlement of Investment Disputes (ICSID)

The ICSID is considered to be the leading international arbitration institution devoted to
resolving disputes between States and foreign investors, also known as BIT
arbitrations.Based in Washington, D.C. (U.S.A.) and operating under the World Bank, ICSID
was established in 1965 by the Convention on the Settlement of Investment Disputes
between States and Nationals of Other States (known as the ICSID Convention or
Washington Convention).
The Multilateral Investment Guarantee Agency (MIGA)
The MIGA is an international financial institution which offers political risk insurance and
credit enhancement guarantees. Such guarantees help investors protect foreign direct
investments against political and non-commercial risks in developing countries.MIGA is a
member of the World Bank Group and is headquartered in Washington, D.C., United States.
It was established in 1988 as an investment insurance facility to encourage confident
investment in developing countries.
World Bank Group Strategy to Help India Achieve Its Vision
The World Bank Groups new Country Partnership Strategy will guide its support to India
from 2013 through 2017. The strategy aims to help the country lay the foundations for
achieving its longer-term vision of faster, more inclusive growth.
A key feature of the new strategy is the significant shift in support toward low-income and
special category states, where many of Indias poor and disadvantaged live.The new
strategy proposes a lending program of $3 billion to $5 billion each year over the next five
years. Sixty percent of the financing will go to state government-backed projects. Half of

this, or 30% of total lending, will go to low-income or special category states, up from 18%
of lending under the previous strategy.

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Rajasekaran
16 hours ago

Refresh F5

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152

Reply

vijay > Rajasekaran

15 hours ago

Good one..true and in exams also no one can predict our chances its totally depends on our
hardwork...good luck all for interviews..

Reply

Chhaya !! > Rajasekaran

16 hours ago

me myself :P

Reply

Ankita Sinha > Rajasekaran

16 hours ago

true :)

true :)

Reply

SBI(Associate) > Rajasekaran

15 hours ago

yes 100% right

Reply

sameer pandey(probationary off > Rajasekaran

16 hours ago

yes !!!!

Reply

Shakher Kohli
16 hours ago

THE HINDU NEWS

RBI chief Raghuram Rajan has been named as the governor of the year in the Central Banking
Awards for 2015 by a British magazine for his deep understanding of the root causes of
economic problems of the country combined with an impressive leadership style.

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84

Reply

Vikas > Shakher Kohli

15 hours ago

Students ka paisa loot kar fraud raghu.

Reply

Guest > Vikas

14 hours ago

has he asked u?

Reply

Panduranga Vaadulis > Guest

12 hours ago

haahaa

Reply

Durgesh
17 hours ago

Some Facts about ATM's

- Max. amount a typical ATM can hold is 88,00,000/Max. amount an ATM is allowed is 12,00,000/-

Max. amount an ATM is allowed is 12,00,000/Disclaimer: My friend works for a firm that installs and operates ATM's on behalf of banks in
India. I believe these figures are true.
A typical ATM has 5 cassettes in it.
Each cassette holds 22 packets of notes.
Each packet has 100 notes in it.
Typically, In India,
ATM's are loaded with 100's, 500's and 1000's in various combinations.
But, each cassette contains same denomination of notes.
So, An ATM machines can hold a maximum of 1000*100*22*4 = 88,00,000 rupees.
Max. amount a typical ATM can hold is 88,00,000/But, As per RBI guidelines, An ATM cannot hold more than 12,00,000/So, At any given time in India, If you plan to loot
seeone
moreATM machine your maximum gain would be
12 Lakh Indian Rupees and few cops on your ass.

34

Reply

Max. amount an ATM is allowed is 12,00,000/Min. amount

an ATM
is allowed to hold is 0/Manisha
> Durgesh
In busy locations,
banks obtain special permission from RBI for 24,00,000/11 hours ago
5thLoot
cassette
forwas
rejected
notes..
wala is
line
hilarious

Reply

sk singh > Durgesh

15 hours ago

Now a days sbi ATM is dispensing 50rs note also.

Reply

Shakher Kohli
17 hours ago

#INTERVEIW TOPIC
Reasons behind splitting of CMD post...............
The central bank RBI said CMDs often dominate the board during their tenure.
SO therefore it also recommended that the post of CMDs be
separated to empower the board..TO TAKE fairly and fast decisions.
also govt want minimu goverment maximum governence.

13

Reply

ravishankar > Shakher Kohli

16 hours ago

i read in a news paper that chairman and managing director are two different roles to play and

itz very difficult for a person to be both in some situations so they will sacrifice certain
responsibilities if itz the same person doing both the jobs so for better progress govt in taking
that step as suggested by governor of rbi

Reply

vinod > Shakher Kohli

16 hours ago

bhai interview kab hai ibpspo ka ?......or tyari kaise kar rahe ho ....are you taking help from any
coaching institute or doing it on your own.

Reply

Shakher Kohli > vinod

16 hours ago

YRR I am prep my self at home

21 jan koo

Reply

Shakher Kohli > vinod

16 hours ago

21 JAN

Reply

<~ShYaM~> > Shakher Kohli

17 hours ago

Ge bro :)

Reply

Shakher Kohli > <~ShYaM~>

17 hours ago

GD EV

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Survivor Ek baar F5 dabao and dikhao

naveen maurya Selected

what you are.. :)

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