The World Bank is an international financial institution that provides loans to developing countries forcapital programs. It comprises two institutions: the International Bank for Reconstruction and Development(IBRD) and the International Development Association (IDA). The World Bank is a component of the World Bank Group, and a member of the United Nations Development Group. The World Bank Group (WBG) is a family of five international organizations that make leveraged loans to developing countries. It is the largest and most famous development bank in the world and is an observer at the United Nations Development Group.
The bank is based in Washington, D.C.. Its five organizations are the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).
The WBG came into formal existence on 27 December 1945 following international ratification of the Bretton Woods agreements.