Shanghai will be the base for a new development bank to be formed by the five Brics counties (Brazil, Russia, India, China and South Africa), according to the BBC.
Upon announcing the new venture at a Brics summit meeting in Fortaleza earlier this week, Brazilian President Dilma Rousseff said the bank would start with an initial capital of US$50bn. The capital will be split equally among the five nations, while a US$100bn emergency reserve fund will also be established.
Brics nations have been critical of the World Bank and International Monetary Fund in the past, citing the unwillingness of these institutions to provide adequate voting rights for developing nations.
The BBC suggest the new bank will compete directly against such funds, with a focus on lending money to developing nations to support infrastructure projects.
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