What are Financial Intermediary Funds (FIFs)?
Financial Intermediary Funds, or FIFs, are very large, multi-partner trust funds established and used by the international community to pool funding from many sources to tackle specific global development challenges in a coordinated manner. As the acronym implies, FIFs serve as intermediaries that bridge the gap between international priorities and the financial needs of recipients to take on hunger, disease, climate change, and other systemic challenges.
An independent governing body – a Board, Steering Committee or Council - is responsible for the FIF’s strategic direction and work program priorities, including setting policies, selecting Implementing Entities and making funding decisions.
The World Bank, in its limited role as FIF Trustee, provides a set of agreed financial services that involve receiving, holding in trust and investing contributed funds, and transferring them to Implementing Entities or recipients when instructed by the FIF governing body. FIF Trusteeship does not involve overseeing or supervising the use of funds. For more on trusteeship models see here.
The FIF Secretariat supports the work of the FIF governing body and acts as a liaison between the governing body, the Trustee, the Implementing Entities and any other relevant parties.
Implementation of activities financed by a FIF is carried out by Implementing Entities, who receive funding allocations for specific activities from the FIF, as decided by the governing body.
For more on FIFs see here.
What does the World Bank hosting a FIF actually mean?
When the World Bank hosts a FIF, it takes on the role of the host of the FIF Secretariat. The Secretariat provides administrative services to the FIF governing body, under the guidance of the FIF governing body. The Secretariat operates in accordance with World Bank policies and procedures, as do its staff.
Who will make decisions on funding and eligibility?
The Fund’s Board will determine funding and eligibility.
Will the World Bank have any role in decision making?
No, decisions will be made by the Fund’s Board.
Will Fund eligibility be related to countries’ income rankings or whether they are members of the World Bank?
The Fund’s Board, which will be independent of the World Bank, will determine eligibility criteria for funding.
Is the Fund’s Board managed by the World Bank?
No, the World Bank plays no role in selecting or managing the Fund’s Board.
Will the Executive Director be selected by the World Bank?
The final selection of the Executive Director of the Fund secretariat will be a decision taken by the Board of the Fund, in accordance with the World Bank’s relevant policies and procedures.
Will the World Bank be an Implementing Entity?
The Fund’s Board will decide if the World Bank will be one of the Implementing Entities.
What is the Bank’s policy on cost recovery? Will it be making a profit from this initiative?
The Bank has extensive experience in managing similar funds. We provide our support services, including staffing, on a simple cost recovery basis. There is no profit.