The World Bank’s strict statutory lending limits and gearing ratio position the World Bank as one of the most prudent and conservative financial institutions in the world.
—Maximum “gearing ratio” of 1:1 Restricts World Bank lending to a maximum of one dollar of outstanding loans and guarantees to one dollar of subscribed capital, reserves, and surplus.
As of June 30, 2016, this ratio was 58.3%.
(a) Net of accumulated loan loss provisions
—The FY 2017 prudential minimum liquidity level has been set at US$27.5 billion; as of June 30, 2016, the actual amount for liquid assets was US$50.5 billion.
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