The Asian Development Bank (ADB) is a multilateral development bank established to promote social and economic development in the Asia and Pacific region. It was founded on December 19, 1966, with its headquarters in Mandaluyong, Metro Manila, Philippines. The ADB was created to be a financial institution "Asian in character" to spur economic growth and address the problem of poverty in the region, which was one of the world's poorest at the time.
The ADB works by providing loans, grants, technical assistance, and equity investments to its developing member countries, the private sector, and public-private partnerships. Its main objectives include reducing poverty, promoting inclusive economic growth, supporting environmental sustainability, and fostering regional cooperation. The institution is governed by a Board of Governors, which delegates power to a Board of Directors, and uses a weighted voting system based on members' capital subscriptions. Starting with 31 members, its membership has expanded to 69 countries, including 50 from the Asia-Pacific region.
The ADB is closely modeled on the World Bank and works in harmony with institutions like the International Monetary Fund (IMF). It is also a key player alongside the newer Asian Infrastructure Investment Bank (AIIB), with which it has co-financed numerous projects. As of December 31, 2020, Japan and the United States were the largest shareholders, each holding 15.571% of the shares, while India held 6.317%. A recent development includes the ADB's commitment to mobilize up to $6 billion by 2030 to deepen ASEAN capital markets. Furthermore, a new policy, effective January 2017, sources both "hard" loans (commercial terms) and "soft" loans (lower interest rates) from the bank's ordinary capital resources (OCR).