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China-led new infrastructure bank puts ADB on defensive

Beijing-headquartered AIIB is likely to begin operations in 2015 with an authorised capital of US$100b

Tokyo

THE Asian Development Bank (ADB) has been thrown onto the defensive by last Friday's signing in Beijing of a memorandum of understanding (MOU) among more than a score of countries to set up a new China-led Asian Infrastructure Investment Bank (AIIB) which could develop into a regional development institution rather than a pure infrastructure bank.

To be headquartered in the Chinese capital, the AIIB is expected to begin operations next year with an authorised capital of US$100 billion, of which a half will be subscribed by China, and with China's former vice-finance minister Jin Liqun as its head.

As representatives from 21 Asian and Middle Eastern nations - led by China and India and also...

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