The BRICS association has launched its New Development Bank (NDP) in Shanghai.
According to BBC, the BRICS countries, Brazil, Russia, India, China and South Africa, support the bank.
The NDB will help the developing countries with infrastructure projects by lending money.
The bank is being seen as an alternative to the World Bank and the International Monetary Fund (IMF), although the group says it is not a rival.
The BRICS association has criticised the IMF and the World Bank for not giving the developing countries enough voting rights.
