International financial institutions are financial institutions established by two or more states, which operate according to the international law. Shareholders are mostly governments and have an exclusive position in the financial market.
The focus of these institutions is:
- Social development
- Monetary stabilization
- Specialized (transformation, …)
The functions of these institutions are:
- Providing loans, grants
- Specific surveillance activities (macro-financial stability)
- Often the creation of standards, modeling policies, structural reforms and rules
The most important institutions are:
- International Monetary Fund (IMF) was established in 1947 as a related UN organization based on the need to create a post-war world economic system (to support mutual trade, currency convertibility and development of war-torn economies). Each member contributes to the common treasury, financial amount (amount of these fees is determined for each state based on economic indicators).
- World Bank (World Bank Group) - an umbrella organization of five institutions (the International Bank for Reconstruction and Development - IBRD, the International Finance Corporation - IFC, the International Development Association - IDA, the Multilateral Investment guarantee Agency - MIGA and the International Centre for Settlement of Investment Disputes - ICSID). Annually publishes the “World Development Report”.
- Bank for International Settlements (BIS) - An international organization to promote international monetary and financial cooperation, the bank for central banks.
- European Investment Bank (EIB) - providing long-term loans for capital investment to entities from the private and public sector, including banks, cooperating with the EU institutions.
- European Central Bank (ECB) - the central bank for the euro zone countries, is responsible for the conduct of monetary policy in the euro area, independent institution, the primary objective is price stability.
- European Bank for Reconstruction and Development (EBRD) - since 1991 helps the countries of Central and Eastern Europe in building a market economy and democracy.
- Council of Europe Development Bank (CEB) - contributes to the development of social investment programs