SCO Interbank Consortium

Last updated

The Shanghai Cooperation Organisation Interbank Consortium (abbreviated as SCO IBC) is a platform for joint financing of development projects by members and other participants of the Shanghai Cooperation Organisation (SCO).

Contents

History

The SCO Interbank Consortium was created in October 2005 during the 2005 SCO Summit. The consortium was among several economic integration projects announced during the summit. [1] The first meeting of the SCO Interbank Association was held in Beijing on 21–22 February 2006. [1]

At the 2025 SCO Tianjin summit, Xi Jinping announced that an additional ¥10 billion would be provided in loans to the SCO IBC between 2026 to 2029. [2]

Banks

Member banks

Observers

Belt and Road Initiative

China has sought to use the platform to push for more cooperation under its Belt and Road Initiative. China Development Bank, one of the two main policy banks supporting the Belt and Road Initiative, had by the end of 2017 loaned $7.69 billion and 3.34 billion yuan to member banks of the SCO Interbank Consortium. The outstanding loans at the time stood at $2.05 billion and 3.3 billion yuan. [3] At the 2018 SCO summit in Qingdao, China's paramount leader Xi Jinping pledged to set up a 30 billion yuan ($4.69 billion) for a special lending facility within the framework of the SCO Interbank Consortium. The capital would be put to use for cross-border transportation projects and industrial parks.[ citation needed ]

SCO Development Bank

The SCO Development Bank is a proposed multilateral financial institution. Since 2010, China has sought to expand financial cooperation under the auspices of the Shanghai Cooperation Organisation by setting up the bank. Russia however has shown skepticism to the bank and in general has prioritized security cooperation within the SCO rather than economic projects. Russia has alternatively suggested to China to buy a stake in the Russian led Eurasian Development Bank. The Asian Infrastructure Investment Bank was established in 2015 and has substituted the proposed role of the SCO Development Bank to fund infrastructure projects in the region. [4]

2019 SCO Bishkek summit

Despite the delays, there still remains support among member states for creating the bank. Pakistani Prime Minister Khan at the 2019 SCO Summit called for the bank and an SCO development fund to be expeditiously created. [5]

2025 SCO Tianjin summit

During the 2025 SCO Tianjin summit, held between 1 August and 1 September, General Secretary of the Chinese Communist Party Xi Jinping announced China's plans to accelerate the development of the SCO Development Bank. [6] [7] [8] [9] [10] The United States' sanction and tariff efforts are believed to have kindled China's acceleration of the bank. [7] [10] It was described to be a means of establishing a new global order aimed towards economic and security-related issues, particularly in developing nations, or the "Global South" according to Xi. [7] Reuters argued this development to be a "direct challenge to the United States," reinforced through China's announcement of its Global Governance Initiative (GGI), aimed to circumvent US and Euro-centric global order. [7] [8]

References

  1. 1 2 Blagov, Sergei (31 October 2005). "Shanghai Cooperation Organisation Eyes Economic, Security Cooperation". Eurasia Daily Monitor. The Jamestown Foundation. Archived from the original on 1 November 2007.
  2. ↑ "SCO has a 10-year plan for a multipolar world, China's Wang Yi says". South China Morning Post. 2025-09-01. Retrieved 2025-09-03.
  3. ↑ "China policy bank reports over $100 bln loans to SCO countries". Xinhua. June 7, 2018.
  4. ↑ Diesen, Glenn. Russia's Geoeconomic Strategy for a Greater Eurasia. Routledge. p. 105.
  5. ↑ "PM urges SCO member states to set up Fund & Development Bank to catalyze trans-regional development agenda". Radio Pakistan . June 14, 2019.
  6. ↑ "China announces plans for SCO Development Bank; says to launch process soon". The Economic Times. 2025-09-01. ISSN   0013-0389 . Retrieved 2025-09-03.
  7. 1 2 3 4 Chen, Laurie; Chu, Mei Mei; Chen, Laurie (2025-09-01). "China's Xi pushes a new global order, flanked by leaders of Russia and India". Reuters. Retrieved 2025-09-03.
  8. 1 2 Jazeera, Al. "China, Russia pledge new global order at Shanghai Cooperation summit". Al Jazeera. Retrieved 2025-09-03.
  9. ↑ "China pushes development bank to help 10 Eurasian countries curb US dollar risks". South China Morning Post. 2025-09-02. Retrieved 2025-09-03.
  10. 1 2 Bloomberg News (1 September 2025). "China-Led Bloc Agrees to Set Up Development Bank in Win for Xi". Bloomberg. Retrieved 2 September 2025.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.