Page 192 - DMGT545_INTERNATIONAL_BUSINESS

Unit 9: International Financial Institutions-I

2. 18% of the share capital in the form of own currency. The amount is also used by Bank for notes
granting loans.
3. 80% of the share capital is payable at the request of the Bank. This amount is not used by
Bank for granting loans. But it can use this amount in discharging its responsibilities.

Task Status of world bank is higher than any other commercial banking authority.
Discuss in brief.

9.4.3 management of the World Bank

Management of the World Bank vests in the following four committees:
1. Board of Governors: The Board of Governors represents the General Council of the Bank.
Every member country appoints one governor and one alternative governor for five years.
No alternative governor can vote except in the absence of his principal. The Board of
Governors selects from its members one president who presides over its annual meeting.
The Board meets normally once a year. This general meeting is convened along with the
general meeting of the IMF in any member country. Each governor has the voting power
as per the financial contribution of the government which he represents. The Board decides
the policy of the Bank. The Board enjoys the following rights:
(a) Admission of new members,
(b) Termination of the membership,
(c) Change in the capital,

(d) Distribution of the income of the Bank,
(e) Agreement with international institutions; and
(f) Liquidation of the Bank.
2. Board of Executive Directors: The Board of Executive Directors consists of 22 members;
of these, 5 members have the largest subscription. They are: America, Britain, Germany,
France and Japan. The remaining is elected from among the other members of the Bank,
for a two-year term. Board of Executive Directors can appoint any person, who is not a
member, either of Board of Governors or Board of Executive Directors, as its President. The
president is the chief officer of the Bank. He acts according to the directions of the Board
of Directors and is responsible to it. He appoints all other officers of the Bank. Board of
Executive Directors is responsible for day-to-day conduct of the Bank’s operations.
3. Advisory Council: It consists of minimum 7 members. Their appointment is made by
Board of Executive Directors. Members of this Council are expert on different subjects like
banking, foreign trade, industry, labour, agriculture, etc. It meets once a year. The council
tenders its advice on different issues to the Bank.
4. Loan Committees: Whenever the member countries apply for loans, the Board of Executive
Directors appoints a Loan Committee. This Committee scrutinizes loan applications and
gives its report on the propriety of the loan.

lovely Professional university 187