1. AN OVERVIEW OF THE GLOBAL FINANCIAL SYSTEM (TOPIC 03) Main Reference International Centre for Education in Islamic Finance. (2006).Islamic Financial Institutions and Markets..Kuala Lumpur: INCEIF

2. TOPICS Introduction The International Monetary Fund The World Bank The Regional Development Banks The Bank for International Settlements The European Monetary System The Islamic Development bank Summary

3. THE WORLD BANK Introduction Dates back to 1944, but actually born in 1946 Richer nations contribute through taxes It has five sections  The International Bank for Reconstruction and Development (IBRD)

4. THE WORLD BANK  The International Development Association (IDA)  The international Finance Corporation (IFC)  The Multilateral Investment Guarantee agency (MIGA)  The International Centre for Settlement of Investment Disputes (ICSID)

5. THE WORLD BANK Objectives Eradication of Poverty Enhance growth and Development

6. THE WORLD BANK The Role of IBRD Driven by developments rather than profit maximization

7. THE WORLD BANK Current Operations Issue debt securities Match currency of its liabilities to its assets Issue bonds for comparative fund cost advantage Enters into derivative transaction Loans to IFC

8. THE WORLD BANK Eligibility to borrow Usually Middle Income countries Lending Lending Principles Credit worthiness Prevailing market conditions

9. THE WORLD BANK Lending Cycle Lending Instrument 1. Investment 2. Development Policy It offers a product mix as well Deferred Drawdown option

10. THE WORLD BANK Guarantees 1. Partial risk 2. Partial Credit 3. Policy bases 4. Enclave

11. THE WORLD BANK Other activities 1. Consultation 2. Research and Training 3. Trust fund administration 4. Investment management

12. End Q&A