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WASHINGTON, Oct. 18 -- The China-initiated Asian Infrastructure Investment Bank (AIIB) can play a constructive role in global economy, in view of the high infrastructure demand in Asia, said a senior U.S. Treasury official on Tuesday.

"As the AIIB is pursuing sound policies as well as principles and practices that are consistent with international best practices in other multilateral development banks (MDBs), it can play a constructive role in global economy," said Nathan Sheets, undersecretary of the Treasury for International Affairs of the U.S. Treasury Department, at an event held by the Center For Strategic and International Studies.

The AIIB takes constructive steps to address the massive infrastructure demand in Asia, and "that's good for global growth," said Sheets.

He regarded the AIIB's documents and projects as encouraging signs that the multilateral development bank is moving in the direction consistent with international standards.

The AIIB has been consulting with and has reached co-financing frameworks with other MDBs, such as the World Bank and the Asian Development Bank, for its first round of projects.

The AIIB, a not-for-profit bank initiated by China, was officially established in December 2015 and started operating in January 2016. With authorized capital of 100 billion U.S. dollars, it prioritizes investment in energy, power, transport, rural infrastructure, environmental protection and logistics.

In June, the bank approved its first four loans, totaling 509 million dollars, to fund power, housing and transport projects in Bangladesh, Indonesia, Pakistanand Tajikistan.