The World Bank on Tuesday welcomed the move taken by the BRICS countries to establish a development bank, vowing to work closely with the new lender to end poverty and build shared prosperity throughout the developing world.

Finance ministers from the BRICS members, namely Brazil, Russia, India, China and South Africa, agreed early Tuesday to set up a development bank to fund infrastructure in the five emerging economies, Chinese Finance Minister Lou Jiwei said in South Africa.

The agreement will be endorsed by BRICS leaders at a summit to be held later today in the South African port city of Durban.

"Establishing a development bank is a significant undertaking," the Washington-based global lender said in a statement.

"The World Bank will stand steady and work closely to partner with regional development banks in a bid to enhance the effectiveness of our collective work," it added.

According to Lou, the BRICS development bank would be complementary to the existing development institutions such as the World Bank and the Asian Development Bank.

However, the ministers did not discuss the initial contributions from each country to the bank.

"What we have now (about the development bank) is just a general picture," Lou said.