The New Development Bank, created by the BRICS group of emerging economies, is considering a capital increase of as much as $2 billion, according to people familiar with the talks. The move comes as investors grow more cautious about sovereign debt and currency volatility across several developing markets.

The bank was set up to finance infrastructure and development projects in member countries, and a fresh capital injection could expand its lending room at a time when many governments face higher borrowing costs. The timing also reflects broader pressure on emerging market balance sheets, where weaker currencies can make dollar-denominated debt more expensive to service.

No final decision has been announced, and details such as the size, structure, and timing of the raise may still change. If approved, the plan would add to a wider debate about how multilateral lenders can support growth without worsening debt burdens in countries already under strain.