Which institution became the World Bank Group's first affiliate when it was established in 1956?

The International Finance Corporation became the World Bank Group's first affiliate when it was established in 1956.

The IFC was created to promote private-sector development in countries where private investment could support economic growth. Unlike the International Bank for Reconstruction and Development, it can invest directly in private companies without requiring a sovereign government guarantee.

Its activities include loans, equity investments, mobilization of capital, and advisory services. The corporation focuses on businesses and projects in developing and emerging markets.

The IFC is often confused with the International Development Association, which provides concessional financing mainly to governments in the world's poorest countries. Both belong to the World Bank Group, but the IFC's central focus is the private sector.