During Word War II, in the year 1944, a decision for the establishment of two institutions was taken in a Conference held at Bretton Woods in America. The institutions to be established were
(1) International Monetary Fund and (2) International Bank For Reconstruction and Development or World Bank. The objective of IMF was to stabilize exchange rates by removing temporary balance of payments deficits. On the other hand, the objective of the International Bank for Reconstruction and Development (IBRD) or the World Bank was the reconstruction of war-ravaged economies and provision of necessary capital for the economic development of underdeveloped countries. The bank was established in 1945 and started its function in June 1945.
The World Bank is an inter-governmental institution and corporate in form. Its capital is wholly owned by its member countries.