BEIJING: China will ultimately have ‘veto power’ over major decisions of the new Beijing-led Asian Infrastructure Investment Bank (AIIB), Wall Street Journal reported today.

The AIIB, which will be based in the Chinese capital, has 57 prospective members, but the United States and Japan — the world’s largest and third-largest economies, respectively — notably have declined to join.

The Journal quoted people close to the bank as saying its voting structure will give China the ‘upper hand’ as the largest shareholder, effectively granting it veto power.

According to the bank’s articles of incorporation, China is providing nearly $30 billion of the institution’s $100 billion capital base, giving Beijing between 25 to 30 per cent of total votes, it said.

The bank’s lean structure will be overseen by an unpaid, non-resident board of directors, the newspaper said.

AIIB, which is expected to be operational later this year, has been viewed by some as a rival to the World Bank and Asian Development Bank. But there are concerns over transparency of the lender, which will fund infrastructure in Asia.