BRICS create development bank, 'mini-IMF'

The BRICS group of emerging powers on Tuesday created a Shanghai-based development bank and a reserve fund seen as alternatives to Western-led institutions.

The leaders of Brazil, Russia, India, China and South Africa agreed to launch the institutions to finance infrastructure projects and head off future economic crises.

"We took the historic decision to create the BRICS bank and the reserve agreement - an important contribution to reconfigure the system of international economic governance," Brazilian President Dilma Rousseff said at a summit in the northeastern seaside city of Fortaleza.

The five emerging nations first unveiled their plans last year. The New Development Bank will mirror the Washington-based World Bank while the reserve is seen as a "mini-IMF."

"We need to work to improve economic governance at a global level, increase the representations and voice of developing countries," said Chinese President Xi Jinping.

Rousseff pressed again for urgent changes in the International Monetary Fund's voting shares "to reflect the unquestionable weight of emerging countries."