ADB Approves Historic Charter Amendment Enabling 50% Expansion in Lending

The amendment marks the first change to the ADB Charter since the institution was founded in 1966, underscoring the significance of this moment in the Bank’s nearly six decades of operations.

The Asian Development Bank (ADB) has reached the required voting threshold to ratify a historic amendment to its founding charter, removing the long-standing lending limitation outlined in Article 12.1. This landmark decision—passed with overwhelming support from 61 member countries as of 14 November 2025—will enable the Bank to expand its annual lending by 50%, from $24 billion to more than $36 billion, dramatically increasing its capacity to support development across Asia and the Pacific.

The amendment marks the first change to the ADB Charter since the institution was founded in 1966, underscoring the significance of this moment in the Bank’s nearly six decades of operations.

A Historic Step Toward Greater Development Impact

ADB President Masato Kanda welcomed the strong support from member countries, calling the vote “a historic decision” that reflects deep trust in the Bank’s mission and performance.

“Removing this limitation means ADB can now move forward with an ambitious plan to increase our annual financing commitments without placing any burden on our shareholders for a general capital increase—something we have not requested since 2009,” Kanda said.

Under the existing charter, Article 12.1 set a ceiling on the ratio of ADB’s outstanding loans and guarantees relative to its capital. Removing this restriction allows the Bank to use its capital base more efficiently and scale up support for developing economies without needing additional paid-in capital from shareholders.

The amendment will officially enter into force three months after ADB informs all members of its adoption, although voting remains open until 30 November.

Voting Threshold Achieved

For any amendment to ADB’s founding charter to pass, it must be approved by:

• Two-thirds of the total number of Governors,

• Representing at least three-fourths (75%) of total voting power.

The threshold was surpassed with 75.175% voting power in favor, representing 61 members from both the Asia-Pacific region and beyond. This wide support demonstrates a strong consensus on the need for multilateral development banks to expand their financial firepower in response to global challenges.

Part of a Larger Strategy to Optimize Capital

The amendment forms a key part of ADB’s ongoing reforms to optimize its balance sheet, expand lending, and respond to increasingly complex development needs.

These measures include:

• The Capital Utilization Plan, which outlines how ADB will progressively increase annual financing to over $36 billion by 2034.

• 2023 capital management reforms that strengthened internal risk frameworks and increased lending headroom.

• Exposure exchange agreements with other multilateral development banks to diversify risk and reduce portfolio concentration.

“This decision is not only about bigger numbers,” President Kanda emphasized. “It means helping families lift themselves out of poverty, expanding opportunities for young people, and supporting communities vulnerable to shocks so they can stand steadily on their own.”

Supporting Ambitious 2030 Targets

With greater financial flexibility, ADB will be better positioned to meet its 2030 operational commitments, including:

• Increasing private sector financing fourfold, to $13 billion annually

• Ensuring 40% of ADB’s sovereign operations directly support private sector development

• Scaling climate finance and resilience investments across the region

• Strengthening support for infrastructure, education, health, and digital transformation

These expanded resources are seen as critical as the region grapples with the impacts of climate change, rising debt burdens, and widening development disparities.

ADB’s Role and Membership

Founded in 1966, the Asian Development Bank is one of the world’s leading multilateral development institutions, owned by 69 member countries, including 50 from Asia and the Pacific. The Bank provides loans, grants, technical assistance, and innovative financial tools to promote inclusive, resilient, and sustainable development.

ADB works closely with governments, the private sector, and development partners to tackle structural challenges and accelerate progress toward the Sustainable Development Goals (SDGs).

Countries Supporting the Amendment

As of 14 November 2025, the following members have voted in favor of the amendment, collectively representing 75.175% of total voting power:

Regional Members: Armenia, Australia, Bangladesh, Bhutan, Brunei Darussalam, Cambodia, Cook Islands, Fiji, Georgia, India, Indonesia, Japan, Kazakhstan, Kiribati, Republic of Korea, Kyrgyz Republic, Lao PDR, Malaysia, Maldives, Marshall Islands, Federated States of Micronesia, Mongolia, Nauru, Nepal, New Zealand, Niue, Pakistan, Palau, Papua New Guinea, Philippines, Samoa, Singapore, Solomon Islands, Sri Lanka, Taipei,China, Tajikistan, Thailand, Timor-Leste, Tonga, Türkiye, Tuvalu, Uzbekistan, Vanuatu, Viet Nam.

Non-Regional Members: Austria, Belgium, Canada, Denmark, Finland, France, Ireland, Israel, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom.

Additional votes may still be submitted until 30 November.

A Transformational Moment for Asia and the Pacific

The ratification of this charter amendment marks a major shift in ADB’s ability to meet the region’s vast development needs—from climate resilience and renewable energy to education, food security, digital connectivity, and sustainable urban growth.

With greater lending capacity and modernized capital management tools, ADB is now positioned to play an even more influential role in helping its developing member countries achieve long-term, inclusive, and resilient growth.