In this article we will discuss about:- 1. Role of Asian Development Bank 2. Operations of Asian Development Bank 3. Resources.

Role of Asian Development Bank:

It was formed to foster economic growth and co-operation in the region of Asia and the Pacific and to contribute to the acceleration of economic development of the developing countries of the region. The basic objective of the Bank is to encourage economic and financial co-operation among the regional members. Members enjoy the right to construct projects supported by Bank loans.

In 28 years of operation, the Bank has become a major catalyst in promot­ing the development of the most populous and fastest-growing region in the world today.

The Bank’s principal functions are:


(i) To make loans and equity investments for the economic and social advancement of developing member countries;

(ii) To provide technical assistance for the preparation and execution of development projects and programmes and advisory services

(iii) To promote investment of public and private capital for development purposes; and

(iv) To respond to requests for assistance in coordinating development policies and plans of member countries.


In its operations, the Bank is also required to give special attention to the needs of the smaller or less developed countries and give priority to regional, sub-regional and national projects and programmes which will contribute to the harmonious economic growth of the region as a whole.

Operations of Asian Development Bank:

The Bank operates as a viable banking institution, charging a flow of capital to the region from outside sources (i.e., from non-member countries). The Bank’s affiliate, the Asian Development Fund, gives soft loans (i.e., loan at commercial rates of interest and longer grace and/or repayment periods) to the poorest nations in the region.

The Bank’s operations cover the entire spectrum of economic develop­ment with particular emphasis on agriculture, energy, capital market de­velopment transport and communication and social infrastructure Most Bank financing is designed to support specific projects. The Bank also provides multi-project loans.

The Bank actively pursue co-financing activities with official as well as commercial and export credit sources. The Bank has also entered into equity investment operations.

Resources of Asian Development Bank:


Loans from ordinary capital resources, which account for 66% of cumulative Bank lending, are generally made to member countries which have attained a somewhat higher level of economic development. Loans from the Asian Development Fund are made on highly concessional terms and almost exclusively to the poorest borrowing countries.

The financial resources of the Bank consist of ordinary capital resources, comprising subscribed capi­tal reserve and funds raised through borrowings; and Special Funds, com­prising contributions made by member countries, accumulated net income and amounts previously set aside from the paid-in capital.