Brazil, Russia, India, China, and South Africa (BRICS) have officially commissioned the New Development Bank (NDB) in Shanghai on Tuesday.  The group said that the bank will primarily hand out loans to countries whose economies are still not yet fully developed and are in need of capital.

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Xinhua reported that Lou Jiwei, the China's Minister of Finance, attended the bank's opening ceremony. Lou said the bank's mission is to provide loans and technical advice to countries with emerging economies.

He added that the NDB will not compete with other global development banks such as the International Monetary Fund (IMF), World Bank (WB), or the Asian Development Bank (ADB), according to Bloomberg Business.

As an economic bloc, BRICS members are responsible for around 25 percent of the world's total production yield. The NDB will also partner with the Asian Infrastructure Investment Bank (AIIB), which is being primarily funded by China. The NDB will be ready to provide loans in early 2016.

The BRICS coalition has provided a $50 billion seed money for the NDB although there are plans to double that amount in the near future.

The first president of the NDB is an Indian Kundapur Vaman Kamath. Each country will reportedly have its turn to field its own choice for the position.

The BRICS members took three years to set up the New Development Bank due to arguments regarding where to create the bank, who will manage it, and where the capital will come from.

In the first week of July, the BRIC members held a meeting in Russia to iron out all the details of the NDB before its opening.

TagsBRICS, BRICS summit, Brics Bank, New Development Bank (NDB), Asian Infrastructure Investment Bank (AIIB), Kundapur Vaman Kamath, Lou Jiwei, NDB Shanghai, AIIB-NDB