The BRICS group of emerging economies-Brazil, Russia, India, China and South Africa—is set to outline plans for a joint development bank during the fourth BRICS Summit on March 28-29, as part of its efforts to boost financial cooperation among the world's powerhouses.

The proposed joint bank will be set up in the mould of the World Bank, allowing the countries to pool resources for infrastructure improvements and could eventually serve as a vehicle for lending during global financial crisis, officials say.

BRICS leaders will announce how the bank would be structured and capitalized during the meeting.

Unlike the International Monetary Fund and World Bank, the current two biggest world's financial institution, BRICS' joint bank is likely to invest in and aid developing countries, with no prerequisite, and more focused, by facilitating their constructions in areas such as infrastructure and medical care, the China News Services reported, quoting Zhou Zhiwei, Secretary-General of Brazilian Studies Center with the Chinese Academy of Social Sciences (CASS).

The emerging economies so far have eclipsed developed counties as the major engine for global growth. The BRICS have contributed over 60 percent to world's growth in 2010, according a report issued by the CASS in 2011.

Together with other mooted measures including expanding local currency settlement and loans, and growing ties between bourses in BRICS countries, such efforts could help boost economic development in the bloc, said Zhou.

It still takes a long time to nail down details of the initiative, analysts say, as operating such an ambitious project requires a lot of basic work, including how to target the assistance and how to finance for the joint bank.

Source:caijing