International Finance Corporation (IFC) was established in July 1956 as an affiliate of the World Bank to provide finance to the private sector. The World Bank grants loans to the governments of the member countries or provides loan capital to the private enterprises on the guarantee of the member governments.
Moreover the World Bank does not provide risk capital. The IFC was established with the specific purpose of providing risk capital to the private enterprises in the less developed countries without government guarantee.
Though the IFC is affiliated to the World Bank, but it is a separate legal entity with separate fund and functions. The membership of the Corporation is open only to the members of the World Bank.
The organisation of the Corporation is the same as that of the World Bank. The Board of Governors and the Executive Directors of the World Bank also function as the Board of Governors and the Executive Directors of the IFC.
The Corporation started with the initial authorised capital of $100 million which has been increased from time to time. The subscription quota of each member is proportionate to its share of subscription to the capital of the World Bank.