Brazil, Russia, India, China, and South Africa, collectively known as the BRICS nations, have agreed to create a development bank. The 6th BRICS summit is being held in Fortaleza, Brazil, with the leaders of the five emerging economic powers meeting. BRIC formed in 2009 for countries defined by fast-growing economies and influence on regional affairs. South Africa joined the group in 2011.
The bank will initially have $50 billion in capital as well as an emergency reserve fund known as a “Contingency Reserve Arrangement” which will hold $100 billion. The BRICS nations have been critical of the World Bank and IMF in the past, believing rich countries had too much power, and the new bank has been created as a competitor.