Updated: 1 September 2026
International Bank for Reconstruction and Development (IBRD): Purpose, Members, Structure and Functions
The International Bank for Reconstruction and Development (IBRD) is a global development cooperative owned by 189 member countries and one of the core institutions of the World Bank Group. It provides loans, guarantees, risk-management products and advisory services mainly to middle-income and creditworthy low-income countries.
History of IBRD and the Bretton Woods system
Delegates from 44 countries met at Bretton Woods, New Hampshire, in July 1944 to design a post-war international economic framework. The conference led to the creation of two major institutions: the International Monetary Fund and the International Bank for Reconstruction and Development.
The IBRD Articles of Agreement entered into force after the required governments accepted them. On 27 December 1945, representatives of 21 countries met in Washington as the Bank's first members. The Bank began operations in 1946 and initially focused heavily on reconstruction after the Second World War.
Over time, IBRD's role expanded from post-war reconstruction to long-term development, poverty reduction, institutional reform, infrastructure, human development, climate resilience and responses to regional and global challenges.
Purpose and modern role of IBRD
The purposes stated in Article I of the IBRD Articles of Agreement include assisting reconstruction and development, facilitating investment of capital for productive purposes, promoting private foreign investment through guarantees or participation, supplementing private investment where necessary, promoting long-range balanced growth of international trade and maintaining equilibrium in balances of payments.
Today, IBRD describes itself as the world's largest multilateral development bank and provides financing and knowledge to middle-income and creditworthy low-income countries. Its modern development work spans economic growth, poverty reduction, jobs, public administration, infrastructure, health, education, energy, transport, water, social protection, climate and disaster resilience.
Who can become a member of IBRD?
The earlier statement that a country simply needs a majority vote of the Board of Governors is incomplete. Under Article II, section 1 of the IBRD Articles of Agreement, membership is open to members of the International Monetary Fund at such times and on such terms as the Bank may prescribe.
In practical terms, a country must first join the IMF before it can become an IBRD member. Membership in IDA, IFC and MIGA is in turn conditional on IBRD membership under the respective institutional arrangements.
How IBRD is governed
| Body | Current role |
|---|---|
| Board of Governors | Each member country appoints one Governor and one Alternate Governor. The Board of Governors is the highest decision-making body and delegates most day-to-day powers to the Executive Directors. |
| Board of Executive Directors | IBRD currently has 25 Executive Directors, not 18. They represent all 189 member countries and decide on loans, policies and major operational matters. |
| President | The President of the World Bank Group is selected by the Executive Directors and serves as Chairman of the Board. Ajay Banga began a five-year term on 2 June 2023. |
Voting power is linked to shareholding. Because IBRD is owned by its member governments, its shareholders exercise ultimate decision-making authority through the governance structure established in its Articles of Agreement.
Main functions of IBRD
Development lending
Provides long-term financing to eligible middle-income and creditworthy low-income countries for development programmes and projects.
Guarantees
Offers guarantees that can help mobilize private investment and manage risks associated with development financing.
Knowledge and advisory services
Provides research, technical assistance, policy advice, data and institutional support alongside financing.
Global and regional challenges
Coordinates responses to issues including climate change, disaster risk, pandemics, food security, fragility and cross-border development challenges.
IBRD lending in fiscal year 2025
IBRD made US$40.9 billion in new net lending commitments in fiscal year 2025 through 139 operations. Its largest regional commitments during the year were in Latin America and the Caribbean and Europe and Central Asia.
Major sectors supported included public administration, transportation, energy and mineral resources, social protection, financial services, agriculture, health, education, digital development and water and sanitation.
This replaces the old page's fiscal-2019 lending figure, which is no longer useful as a current snapshot.
Financial and risk-management products
IBRD raises funds in international capital markets and uses its financial strength to provide development financing to clients. Its products include flexible loans, guarantees, currency and interest-rate risk-management tools, swaps and contingent financing.
The Development Policy Financing Deferred Drawdown Option (DPF DDO) provides a contingent credit line that can be drawn when financing needs arise because of adverse economic events. The Catastrophe Deferred Drawdown Option (Cat DDO) can provide rapid liquidity following specified natural or health-related disasters.
World Bank Treasury also uses capital-market instruments, including catastrophe-risk transactions, to help countries transfer or manage disaster risk.
IBRD and IDA within the World Bank
IBRD and the International Development Association (IDA) together are commonly referred to as the World Bank. IBRD generally serves middle-income and creditworthy low-income borrowers, while IDA focuses on the poorest eligible countries through concessional financing and grants.
The World Bank Group also includes the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).
Relationship between IBRD and the United Nations
IBRD has a formal relationship with the United Nations under an agreement approved by the Bank's Board of Governors on 16 September 1947 and by the United Nations General Assembly on 15 November 1947.
The relationship is distinctive because the Bank retains substantial independence in financial and operational matters while maintaining cooperation and liaison with the United Nations system.
Official sources
For current institutional information, use the IBRD Articles of Agreement, World Bank Member Countries, Boards of Executive Directors, World Bank Annual Report, World Bank History and the World Bank Treasury IBRD Financial Products pages.
Note: Membership, leadership, lending totals, financial products and institutional statistics may change. This page reflects official World Bank information available as of 1 September 2026.