Chinese President Xi Jinping announced plans to fast-track the establishment of a Shanghai Cooperation Organisation (SCO) development bank, pledging $1.4 billion in loans over three years to boost the bloc’s economic influence.

Speaking at the SCO summit in Tianjin, Xi stated that member states are facing rising security and development challenges. The proposed bank would expand the SCO’s role beyond security into finance, acting as an alternative to Western-led institutions. No launch timeline has been set.

The SCO, founded in 2001, now includes China, Russia, India, Iran, and Central Asian nations. Xi called for a “multipolar world” and urged states to reject “Cold War mentality.”

Russian President Vladimir Putin backed Xi’s vision, opposing sanctions and calling for reforms at the IMF and World Bank. Both leaders positioned the SCO as a platform for financial cooperation and a counter to US-led systems.

Analysts say the bank plan highlights China’s long-term push to reshape global governance, though questions remain about the SCO’s effectiveness given its past security focus.

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