New Development Bank: How Brics bank raises money and finances projects

During the Brics summit in New Delhi, the grouping urged the New Development Bank to expand local-currency financing. Here is how bank raises funds and what it finances

De-dollarisation was among the key economic themes at the 18th Brics Summit in New Delhi, but the grouping stopped short of backing a common Brics currency.

Instead, Brics grouping encouraged the New Development Bank (NDB) to expand its local-currency financing and strengthen its ability to mobilise resources. The grouping described the NDB as a crucial BRICS institution for promoting sustainable development, reducing inequalities and supporting resilience in emerging economies. The focus puts the spotlight on the institution often described as the “Brics bank”. So, what exactly is the NDB, how does it raise money, and what does it finance?

What is the New Development Bank?

The New Development Bank is a multilateral development bank established in 2015 by the orginial Brics countries: Brazil, Russia, India, China and South Africa. The bank is headquartered in Shanghai and has established an on-the-ground presence in all five founding members.

The NDB was established with an authorised capital of $100 billion. Its mandate is to mobilise resources for infrastructure and sustainable development projects in Brics countries and other emerging-market and developing economies. The NDB is no longer restricted to the original five countries. The bank began expanding its membership in 2021. Bangladesh, the United Arab Emirates (UAE), Egypt, Algeria and Uzbekistan have subsequently joined. Uzbekistan became a member in June 2026. Uruguay, Colombia, Ethiopia, Angola and Zimbabwe are listed as prospective members.