Representatives of 57 countries gathered in the Great Hall of the People in Beijing on Monday for the signing of the articles of agreement for the Asian Infrastructure Investment Bank (AIIB).

According to China Daily, about 50 delegates present at the ceremony put pen to paper to officially commemorate the inauguration of the bank. Delegates of the other seven member countries will reportedly confer with their governments before signing the agreement.

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The AIIB is a multilateral investment bank that will support the development of environmentally sustainable infrastructural projects. The bank, which will have its headquarters in Beijing, is scheduled to commence operations later in the year with at least half of its total capital. The AIIB is expected to have a total capital base of $100 billion (over 6 billion yuan).

Xinhua reported that the agreement signed by the founding members of the bank today includes details about the structure of the organization, as well as its system of operation and the distribution of shares among member countries. With a 30 percent stake in the bank, China is the largest shareholder. The country has invested about $30 billion into the organization. India, Russia, Germany, South Korea and Australia are the other shareholders with the largest stake in AIIB. About 25 percent of the bank's shares will reportedly go to countries outside Asia.

Chinese officials have expressed optimism that the bank would prove to be an equally successful source of funding for nations as the World Bank. AIIB would provide funding for economically friendly infrastructural projects such as roads, bridges and similar constructions, which would further integrate the region and promote economic cooperation.

Officials have vowed to adopt modern organizational systems and enforce a zero-tolerance policy for corruption.

China's deputy Finance Minister Shi Yaobin has told Xinhua that the government does not plan to have veto power in the bank. He explained that the current balance of power in AIIB would become more even as other nations join.

Recently local sources have reported that at least 10 countries were waiting to join the new bank. Some countries - such as the US and Japan - have hesitated to join the bank due to some skepticism about its operational guidelines.

TagsAsian Infrastructure Investment Bank (AIIB)