The functions of this bank (also known as the world bank) are:

(a) To assist in the reconstruction and development of the territories of its members governments by facilitating investments of capital for productive purposes.

(b) To promote foreign private investment by guarantees of or through participation in loans and other investments made by private investors.

(c) Where private capital is not available on reasonable terms, to make loans for productive purposes out of its own resources or out of the funds borrowed by it.

(d) To promote the long term growth of international trade and the maintenance of equilibrium in balance of payments by encouraging international investment for the resources of members.

The bank advance loans to member countries in the following three ways:

i. By making or participating in direct loans out of its own funds.

ii. Out of funds raised in the markets of a member or otherwise borrowed by the bank.

iii. By guaranteeing in whole or part loans made by private investors through the investments channels.

The bank has made loans for specific development projects in the field of Agriculture, Power, Transport, Industry and Education, Railway Rehabilitation, Highway Constructions etc.