DEFINITION of 'World Bank Group'

The World Bank Group is the world's most prominent development bank.

BREAKING DOWN 'World Bank Group'

The World Bank Group provides advice and financial assistance in the form of discounted loans and grants to countries struggling with poverty, with a focus on areas such as health, education and agriculture. It was created on December 27, 1945 as part of the Bretton Woods agreement and consists of five organizations:

• The International Bank for Reconstruction and Development (IBRD)
• 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)

The first two institutions, the IBRD and the IDA, comprise the World Bank, a subgroup within the World Bank Group.

The World Bank Group has 189 member states, with the U.S. as the bank's largest shareholder. The U.S. president nominates the bank's president, all of whom have so far been U.S. citizens. The bank's headquarters is in Washington, D.C.

According to the World Bank Group's website, it has two goals it aims to accomplish by 2030: to end extreme poverty, defined as reducing the share of the world population living on less than $1.90 per day to 3%, and to increase the incomes of the lowest-earning 40% of every country.

 

RELATED TERMS
  1. International Bank Of Reconstruction ...

    A component of the United Nation's World Bank Group that was ...
  2. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  3. Financial Services Agency - FSA ...

    The Japanese government entity responsible for overseeing banking, ...
  4. Multilateral Development Bank - ...

    Multilateral Development Bank (MDB) is an international financial ...
  5. International Finance Corporation

    The International Finance Corporation is an organization dedicated ...
  6. Individual Development Account ...

    A savings account for lower income individuals. An IDA is used ...
Related Articles
  1. Taxes

    10 States with Highest Income Taxes

    Find out who is actually paying the most state taxes as a percent of their income. California and New Jersey are not in the top 10.
  2. Insights

    What Is The World Bank?

    You've heard of the World Bank, now find out how it functions and why some groups oppose it.
  3. Managing Wealth

    Eight Financial Safeguards If Disaster Strikes

    In an emergency like a fire, hurricane, flood, tornado or earthquake, you may not be able to protect your home. But you can take steps to avoid financial disaster.
  4. Insights

    The World's Top 10 Banks

    Learn more about the world's largest banks and how more financial power shifts eastward as China is home to four of the world's largest banks.
  5. Managing Wealth

    The Pros & Cons Of Owning Rental Property

    Becoming a landlord can be a smart financial move, but be sure you go into it with your eyes open.
  6. Retirement

    5 Banks That Will Pay You to Roll Over a 401(k)

    Discover which five financial institutions will pay you a cash bonus or match when you roll over assets from an old 401(k) or qualified retirement plan.
  7. Personal Finance

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  8. Insights

    World Bank Data For Dummies

    Developing countries can't always afford to track the data crucial to setting the right economic policies and programs. That's where the World Bank steps in.
  9. Financial Advisor

    Career Advice: Investment Banking Vs. Investment Management

    Review an in-depth comparison between investment banking and investment management, their respective career paths and which one you should choose.
  10. Small Business

    Need a Loan for Your Startup? Here's How to Prepare a Thorough Loan Package

    Learn how to craft the vital components of a loan package for your startup small business, and how to package it to be as appealing to the lender as possible.
RELATED FAQS
  1. What developed countries have the highest concentration in the banking sector?

    Learn about the developed countries that have the greatest concentration in the banking sector and the most important emerging ... Read Answer >>
  2. Why is the Chicago Board Options Exchange important?

    Learn about the history of the Chicago Board Options Exchange and understand the CBOE's central importance in the financial ... Read Answer >>
  3. What is the average profit margin for a company in the banking sector?

    Learn what the average profit margin is for companies in the banking sector, along with other evaluation metrics often used ... Read Answer >>
Hot Definitions
  1. Covariance

    A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns ...
  2. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  3. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  4. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  5. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
  6. Inverse Transaction

    A transaction that can cancel out a forward contract that has the same value date.
Trading Center