ADB chief doesn't welcome Chinese-backed Chinese rival

BEIJING (Reuters) - The Asian Development Bank (ADB) chief said on Thursday he doesn't welcome a China-backed rival bank that will have a virtually identical aim. "I understand it, but I don't welcome it," said bank president Takehiko Nakao. "I'm not so concerned." His remarks come on the eve of the first step toward founding the Asia Infrastructure Investment Bank (AIIB). Reporters have received invitations to a signing of a key document on Friday that will begin the process of launching the bank. The two banks will have the same aim, but Nakao said he was not overly concerned about having competition as ADB already had a large staff and experience, having been founded in 1966. "There's a misunderstanding that the ADB is for poverty reduction and AIIB is for infrastructure support, but the majority of our banking is to infrastructure," Nakao said. He also downplayed the prospect that staff would leave for the rival bank. The comments mark a reversal from Nakao's statement in May that he would be "very happy" to work with China on an Asia infrastructure bank. The Manila-based ADB is owned by its 67 members with China owning roughly 6 percent. AIIB has attracted the interest of 21 countries, according to China's finance ministry. Chinese President Xi Jinping first raised the idea of the AIIB in October 2013, although few specifics on how the bank will operate have been announced. (Reporting by Jake Spring; editing by Nick Macfie)