The Bank for International Settlements (BIS) happened to be the world financial institution, as well as an official forum of central banks. Performs a particular function of the “bank of central banks.” The headquarters of the BIS is located in Basel (Switzerland).
They are created in 1930 by the central banks of England, Belgium, Germany, Italy, France, Japan and a group of US commercial banks to ensure that Germany will pay reparations to the victor countries in the First World War. At present, 60 central banks, including the Bank of Russia, are shareholders of the BIS.
BANK FOR INTERNATIONAL SETTLEMENTS (BIS) 2020- AND ALL YOU NEED TO KNOW
- Goals and activities
By the Charter, the objectives of the BIS are “to promote cooperation between central banks in creating additional opportunities for international financial transactions, as well as in the performance of the functions of a trustee or agent for international financial calculations.”
Areas of activity of the BIS are:
- banking operations (deposit, currency, credit, agency, transactions with gold and securities);
- acting as the coordinating center for the monetary and foreign exchange policy of the central banks-members of the BIS;
- control of international banking activities that do not fall under the national legislation of any of the countries;
- acting as an information and research center;
- working as an agent for the clearing and euro settlement system.
- Bank of Russia cooperation with the BIS and participation in capital
The authorized share capital of the BIS is 3 billion SDRs and is represented in the form of 600,000 shares with an equal nominal value (5,000 SDRs per share). To date, 559,125 shares have been issued.
The Bank of Russia joined the BIS in November 1996 by subscribing to 3,000 shares by the decision of the Board of Directors of the Bank of Russia and by the conclusion of the Board of Directors of the BIS. On May 31, 2005, the Bank of Russia additionally acquired 211 shares of the American issue (with the United States having the right to vote on them). This is due to the redistribution of BIS shares among central banks, which were previously in the hands of private shareholders.
As a result, the Bank of Russia currently owns 3,211 BIS shares with a total nominal value of SDR 16,055,000 (the stock in the authorized capital is 0.57%, in the voting capital it is 0.54%).
In 2018, the Bank of Russia co-operated with the Bank for International Settlements (BIS) mainly in the following formats:
Bank for International Settlements
- Central Bank Governors / BIS All Governor’s Meeting;
- BIS Group of Central Governors and Supervisors / Supervisors / Supervisors / Supervisory Authorities (GHOS);
- Central Bank Governors for the World Economy / BIS Global Economy Meeting (GEM);
- Meeting of Governors of Central Banks of Major Emerging Market Countries (EME) / BIS Meeting of Governors of Emerging Market Countries (EME);
- Meetings and events of the Irving Fisher Committee on Statistics of Central Banks / BIS Irving Fisher Committee on Central Bank Statistics (IFC);
- Meetings and events of the Committee on Payments and Market Infrastructures (CRPD) / BIS Committee on Payments and Market Infrastructures (CPMI);
- Central Bank Governance Working Group / BIS Central Bank Governance Group (Network);
- International Symposium of the Bank of France and the Bank for International Settlements (BIS).
The priority area of work was participation in meetings of central bank governors at the Bank for International Settlements (BIS), as well as GHOS, GEM, EME events.
The topics of the relevant activities of the BIS included monetary policy issues and its implementation in emerging market countries, the actions of central banks to provide liquidity, combat inflationary and deflationary pressures, financial technologies, and cybersecurity.
One of the essential results of the Bank of Russia cooperation with the BIS in 2016 was the launch of the Bank of Russia project on management reporting for the Bank of Russia management “Pilot of a mobile application for the Bank of Russia management on summary metrics and indicators.” The significant contribution to the implementation of this project at the initial stage was the results of the research project of the BIS on the systematization of indicators characterizing the efficiency of central banks and the development of management reporting on their basis for the management of financial regulators.
The use of the BIS’s international experience in this area was made possible thanks to the interaction of the Bank of Russia with the Working Group on Governance in Central Banks and the organization of active information exchange with its secretariat.
In 2018, the Bank of Russia regularly ensured the participation of the management of the Bank of Russia in meetings of the governing bodies of the BIS.
An important area of work was the interaction of the Bank of Russia with the Irving Fisher Committee on Statistics of Central Banks (IFC).
IFC is a global professional community of economists, statisticians, and central bankers dealing with statistical issues. In 2016, the number of IFC members increased to 89 with the entry of another four central banks (Cambodia, El Salvador, Macau, and East Timor). The international work in this direction is coordinated by the Department of Statistics and Data Management.
Cooperation with the BIS was also carried out through the Committee on payments and market infrastructures (CRPD). Relevant information and materials of the Bank of Russia were taken into account by the BIS in the preparation of reports, as well as in the development of international standards by the BIS in the field of payment systems and other financial market infrastructure facilities. Coordination of international cooperation in this area is carried out by the Department of the national payment system.
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Conclusion On Bank for International Settlements (BIS)
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