Financial Strength Backed by Quality Loan Portfolio
The World Bank is highly valued amongst its borrowing nations which make meeting financial obligations to the World Bank a top priority
- The World Bank is recognized by the major rating agencies to enjoy a preferred creditor status with its borrower-shareholders
- Lending is limited to sovereign or sovereign-guaranteed projects and programs.
- Strict limits are set on loan concentration in individual countries.
- The World Bank has a policy of freezing loans approvals and disbursements if a country fails to pay obligations on time
Prudent Risk Management
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, 2018, this ratio was 62.1%.
The FY 2019 the target liquidity level has been set at USD 56 Billion; as of June 30, 2018, the actual amount for liquid assets was USD 72 Billion.
Diversified Stakeholder Base
The World Bank is recognized by the major rating agencies to enjoy a preferred creditor status with its 189 borrower-shareholders.
Current Capital (as of June 30,2017) USD Billions
Total Subscribed Capital
Current Capital (as of June 30, 2018)