Established in 1930, originally to facilitate the payment of First World War reparations by Germany, the BIS has evolved into a central bank for many of the world's central banks. The BIS's main objective is to promote cooperation among central banks and, to this end, it provides a key forum for consultation. Since the early 1960s, the BIS has hosted regular meetings of central bank governors of the G-10 countries who meet to discuss issues of common interest. The BIS is organised as a commercial bank, with 84 per cent owned by central banks and the remainder held by private investors (these shareholders have no say in the running of the bank). Under an international treaty, the bank is immune from government interference and taxes. The BIS also has a number of important sub-committees, such as the Basle Committee on Banking Supervision (which devised an international agreement on minimum capital standards for banks that has been adopted by central banks in all OECD countries), the Committee on Payment and Settlement Systems, the Euro-Currency Standing Committee and the Gold and Foreign Exchange Committee. central bank members of the BIS total 33 of which the only non-European central banks are the Reserve Bank of Australia, the bank of Canada, the US Federal Reserve System, the bank of Japan and the South African Reserve bank. Abbrev. BIS. See also: capital adequacy, Group of Ten, International Monetary Fund, risk-weighted assets.
|
