Chinese President Xi Jinping launched the new “Asia Infrastructure Investment Bank” (AIIB) in Beijing on the 16th Jan 2016.
The AIIB represents a shift in global lending from global banks like the International Monetary Fund (IMF) or the World Bank, as is presents new options for country-states to access funds.
AIIB is a $100 billion funded bank with a list of founding stakeholders from 31 countries. See AIIB.
Major shareholders include the BRIC countries. China, India and Russia form lead investors.
Traditionally non-BRIC aligned investors include Britain, Germany, France, Australia and South Korea.
Countries that have abstained from investing in AIIB include the United States, Japan and Taiwan.
The implication of the new AIIB bank is a changing global shift of investment via entities in the USA. Coupled with other initiatives to de-couple the global financial system from the USA, this shift presents a financial shift that could spell danger for the US banking system.
The irony of the $100 billion dollar investment is that it is priced in US dollars.