The China-led Asian Infrastructure Investment Bank, AIIB will be formally established by the end of this year. China's Finance Minister, Lou Jiwei said today that Beijing was communicating with the United States and Japan over its formation. He said in an interview with state media that the bank would complement, rather than compete with other institutions, including the Asian Development Bank and the World Bank. Australia has said that there was a lot of merit in the AIIB, while Japan's Finance minister signaled a cautious approval of the institution that the United States has warned against.