BRICS—the emerging nations coalition of Brazil, Russia, India, China and South Africa—have banded together to create the New Development Bank, a $100 billion development bank and an emergency reserve fund designed to replace the Western-led International Monetary Fund and World Bank.

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“The new Brics bank, which will fund infrastructure projects, will have initial capital of $50bn and maximum allowable capital of $100bn,” Financial Times reported. “Each country will pay in $10bn, giving them a theoretically equal say. The bank will be based in Shanghai, a sop to Beijing, which clearly intends to wield influence. Yet the presidency will be rotated, starting with India. China will not have a turn until 2021.”

“The Brics were prompted to seek coordinated action after an exodus of capital from emerging markets last year, triggered by the scaling back of US monetary stimulus,” The Guardian reported. “The new bank reflects the growing influence of the Brics, which account for almost half the world’s population and about a fifth of global economic output.”