The Bank for International Settlements (BIS) is a global financial corporation. Its purpose is to carry out interaction between central banks of different countries and to facilitate settlements between states. The BIS played a significant role in the formation of the current global financial system and today it continues to be a very influential structure.
History
After the First World War (1914-1918), losing Germany paid reparations to the victorious countries. But after a few years it became clear that the implementation of payments requires new conditions. In particular, it was necessary to create a new financial structure, moreover, on a transnational scale.
Since 1930, the BIS has become such a structure. It was founded by the central banks of Great Britain, Belgium, Italy, France, Japan and also Germany. In addition, a group of US commercial banks bought out a stake in the BIS capital.
In addition to its function of collecting and distributing German reparations, the BIS worked in other areas. In particular, he participated in the preparation and implementation of international agreements in the field of finance, carried out deposit operations and transfers on behalf of central banks, etc.
The Second World War of 1939-1945 changed the meaning and role of the corporation. They even wanted to abolish it, since the International Monetary Fund and the International Bank for Reconstruction and Development were created. The liquidation of the BIS, however, did not happen.
Over time, the BIS even expanded the list of its functions. Thus, the organization made payments in accordance with the "Marshall Plan", according to which the United States provided post-war assistance to Western European economies. Subsequently, the BIS carried out various operations: for the European Payments Union, under the European Monetary Agreement, and others. In the 1980s, the BIS became an agent bank for the clearing of commercial banks in the common European currency unit ECU, and then in euros. And in the 90s of the last century, a special service under the BIS helped the countries of the former "socialist camp" build a new "market" banking system.
BIS today
Today, the founders of the BIS are over fifty central banks, mainly European. The Bank of Russia has been among them for over 20 years.
Modern tasks of the BMR:
- promote cooperation between central banks of different states;
- coordinate the actions of central banks, primarily in the field of monetary policy;
- provide conditions for conducting financial transactions between countries.
The most influential group within the BIS is the Economic Advisory Committee. It is this body that plays the role of a kind of central bank for central banks.
The BIS has a Basel Committee on Banking Supervision. This committee is responsible for the development and implementation of common standards in the field of banking regulation.
BIS itself provides financial services:
- settlements between central banks;
- short-term financing
- loans and deposits;
- investment services;
- guarantees, etc.
The BIS services are addressed primarily to central banks. The corporation does not lend to governments. She also does not open current accounts.
The BIS is an important meeting place for the heads of central banks. Governors meet periodically to discuss in which direction the monetary sphere should be regulated and how to influence the economy. Such meetings are usually closed.
In addition, the BIS is a major research center in the field of finance.
Control
The BIS is headed by a chairman who is elected by a 13-member board of directors. Five of the latter are governors of the central banks of Great Britain, France, Belgium, Germany and Italy. These five, in turn, appoint five more board members from among business representatives.
The council also includes three co-opted members. Usually these are the heads of the central banks of Switzerland, the Netherlands and Sweden.
Location
The headquarters of the BIS is located in Basel, Switzerland. The bank is not subject to Swiss law. It is difficult even for police to enter the office building. In this respect, the BIS headquarters enjoys the same rights as the headquarters of the UN or the IMF.
