IFC, the International Finance Corporation, is subject to regulation under the governance of its Board of Governors. This board comprises representatives from each member country, with each country appointing a Governor, usually the Minister of Finance. These appointed individuals hold seats on both the IFC and World Bank Boards of Governors. The IFC’s Board of Governors is vested with the overarching authority, yet it has delegated most of its powers to the Board of Directors.
The Board of Directors, therefore, assumes a crucial regulatory role within the IFC framework. It is this body that exercises the delegated powers from the Board of Governors. While the Board of Governors retains certain reserved powers, the day-to-day operations and decision-making processes are largely within the purview of the Board of Directors. As such, it is responsible for overseeing the activities of the IFC and ensuring compliance with regulations and policies.
In essence, the governance structure of the IFC delineates a clear regulatory hierarchy. The Board of Governors holds the highest authority, with the Board of Directors acting as its operational arm. Through this system, the IFC ensures effective oversight and regulation of its activities in line with its mandate of fostering sustainable economic development.
(Response: The regulation of IFC primarily falls under the authority of its Board of Governors, with the Board of Directors executing most delegated powers.)