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BEIJING, Oct. 24 -- The Memorandum of Understanding on Establishing the Asian Infrastructure Investment Bank (AIIB) specifies that the authorized capital of AIIB is 100 billion U.S. dollars and the initial subscribed capital is expected to be around 50 billion dollars. The paid-in ratio will be 20 percent, according to Chinese Finance Minister Lou Jiwei on Friday.

Lou said Prospective Founding Members have agreed that GDP will be the basic parameter in determining share allocation among member countries. Therefore, China will be the largest shareholder.

Previously, China announced that it is willing to subscribe up to 50 percent of the capital. This is an indication that China would like to provide strong support to AIIB, Lou said.

However, China will not seek to be "the single majority shareholder" and will not necessarily subscribe 50 percent of the capital, He said. " Moreover, China' s share ratio will be gradually diluted with more members joining AIIB in the future."

Lou said the governance structure of the Bank will consist of three levels: Board of Governors, Board of Directors and the Management, adding that all powers of the Bank will be vested in the Board of Governors which may delegate to the Board of Directors and the Management its powers as stipulated in the Articles of Agreement.

The Board of Directors will be non-resident initially and meet regularly to make key policy decisions. The Bank will develop an effective oversight mechanism to ensure the accountability of the Management. The President and senior management of the Bank will be selected through an open, inclusive, transparent and merit-based process, the minister said.

Twenty-first Asian countries that are willing to join AIIB as founding members on Friday signed the MOU. As agreed, Beijing will be the host city for the AIIB' s headquarters.

The 21 countries are Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam.