COMPARATIVE ANALYSIS OF LEGAL FRAMEWORKS OF ASIAN DEVELOPMENT BANK (ADB) AND ASIAN INFRASTRUCTURE INVESTMENT BANK (AIIB)

Abstract

This research delves into the comparative legal frameworks of the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) with a focus on international commercial law in the banking sector. It investigates the legal regimes governing these institutions and the role regulatory authorities play in ensuring transparency, accountability, and investor confidence, particularly in the AIIB. Using doctrinal and comparative research methods, this study critically analyzes primary and secondary sources such as treaties, international legal instruments, and scholarly works from organizations like the ADB and World Bank. The research addresses pivotal questions, including the AIIB's role in the region, China's strategic steps in its creation, international standards in drafting banking laws, and the legal mechanisms for dispute resolution. The study further evaluates decision-making processes under the AIIB's  Articles of Agreement and conducts a comparative analysis of AIIB and ADB legal structures. The aim is to highlight gaps within these frameworks and suggest reforms aligned with international best practices. The findings indicate that while AIIB is gaining global credibility due to its robust governance and legal framework, there are areas that require further enhancement to fully meet international standards. The recommendations derived from this analysis are particularly relevant to Pakistan, offering guidance on developing a resilient legal infrastructure for financial institutions. This research not only identifies legal gaps but
also provides actionable insights for policymakers in Pakistan, contributing to stronger economic development.