What Is the Bank for International Settlements?

The Bank for International Settlements (BIS) is a syndicate of central banks in Britain, France, Germany, Italy, Italy, Belgium, and Japan, and Morgan Bank, which represents the interests of the US banking community, and Citibank in New York and Chicago. Established in 1930, the International Agreement was originally established to deal with the issue of German war reparations after the First World War, and later evolved into an international financial institution cooperating with central banks of various countries. In Basel, Switzerland. When it was first established, there were only seven member states, and the current member states have grown to 60 central banks or monetary authorities. ^[1-2]

Bank for International Settlements

The Bank for International Settlements (BIS) is based in Britain, France, Germany, Italy, Belgium, Japan and other countries.

The Bank for International Settlements was originally set up to deal with German compensation payments and related business issues related to liquidation after World War I.

China established a business relationship with the Bank for International Settlements in 1984. The People's Bank of China has established business relationships with the Bank for International Settlements since 1986, handling foreign exchange and gold business. Since then, delegations have been sent to the bank's annual meetings as customers each year. The Bank for International Settlements held a shareholders' meeting, and the People's Bank of China was invited to attend the meeting.

Mission of the Bank for International Settlements

Bank for International Settlements The purpose of the Bank for International Settlements is to "promote cooperation between central banks of various countries and facilitate international financial operations", and to act as the assignee or agent of international clearing. Expanding cooperation between central banks of various countries has always been one of the important factors in promoting international financial stability. Therefore, the Bank for International Settlements has become a meeting place for central bankers of various countries and accepts the commission of various central banks to carry out various businesses. According to the regulations of the Bank for International Settlements, it has the right to conduct the following business activities:

Buy, sell, exchange and store gold for yourself and for the central bank;

Provide loans to and accept loans from central banks of member countries;

(3) To process and reissue promissory notes, buy or sell promissory notes and other premium short-term bonds for the central banks of the member states;

It can be reliable, and it can also be sold by the central banks of member states (except foreign exchange and securities stocks);

Accept funds and deposits from central banks of member countries;

Accept the government deposit as the trustee or accept other funds according to the resolution of the board of directors. Do not issue prompt payment bank notes, acceptance bills, or provide loans to governments (except for the purchase of national debt);

Supervise any enterprise;

For the real estate attributed to the bank due to the low repayment of the bank's debt, take charge of the real estate before it is sold at a more appropriate price.

The Bank for International Settlements (BIS) is an international organisation which fosters international monetary and financial cooperation and serves as a bank for central banks.

The BIS fulfils this mandate by acting as:

a forum to promote discussion and policy analysis among central banks and within the international financial community a centre for economic and monetary research a prime counterparty for central banks in their financial transactions agent or trustee in connection with international financial operations As its customers are central banks and international organisations, the BIS does not accept deposits from, or provide financial services to, private indliduals or corporate entities. The BIS strongly advises caution against fraudulent schemes.

Who the BIS serves

The Bank for International Settlements serves the central banks of various countries and international organizations (such as the International Maritime Organization, the International Telecommunication Union, the World Meteorological Organization, and the World Health Organization) as its service objects, and does not handle private business. This plays a useful complementary role to the international monetary and financial institutions in the United Nations system. Foreign exchange reserves, currency types can be converted and can be withdrawn at any time without having to declare a reason. This provides a good way for some countries to change the structure of their foreign exchange reserves and achieve diversification. Depositing gold reserves with the BIS is free of charge and can be used as collateral to obtain a cash loan of 85% of the value of gold from the BIS. At the same time, the Bank for International Settlements also handles gold purchases and sales on behalf of central banks in various countries and is responsible for maintaining confidentiality. It is therefore very popular in the central banks of the member states.

In addition to banking activities, the BIS also acts as a central bank club and a governing place for cooperation between central banks of various countries. Its board of directors and other meetings provide a good opportunity for information exchange on the international currency situation.

Organizational role of the Bank for International Settlements

Typical regional international financial institutions are the International Settlement Bank, the Inter-American Development Bank, the European Investment Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the African Development Bank and the Caribbean Development Bank.

In addition to banking activities, the Bank also serves as a central bank's club, with the purpose of "promoting cooperation between central banks of various countries and facilitating international financial operations", and is a meeting place for central bank presidents and officials. ^[2]

Establishment of the Bank for International Settlements

The essence of the establishment of the Bank for International Settlements is that the United States should use this institution as a means to control German finances and place European debtors under the supervision of US debt issues. In 1944, according to the resolution of the Bretton Woods Conference, the mission of the Bank for International Settlements was completed and it should be dissolved, but the United States still retained it as a subsidiary of the International Monetary Fund and the World Bank.

In September 1996, the Bank for International Settlements decided to accept the central banks of nine countries and regions, including China, India, South Korea, Singapore, Brazil, Mexico, Russia, Saudi Arabia, and Hong Kong, or institutions exercising central bank functions as members. This is the first time the BIS has admitted new members in 25 years. The original 32 members included the central banks of 26 European countries, and the remaining six were the central banks of Canada, Australia, Japan, Turkey, and South Africa, and the Morgan Bank representing the interests of the United States.

Organization of the Bank for International Settlements

1. Handle international clearing affairs. After World War II, the Bank for International Settlements successively became a financial business agent of international organizations such as the European Economic Cooperation Organization, the European Payments Union, the European Coal and Steel Alliance, the Gold Repository, and the European Monetary Cooperation Fund, and assumed a large number of international settlement businesses.

2. Handle or represent the relevant banking business. After World War II, the Bank's business continued to expand. The main businesses that it can engage in are: accepting gold or currency deposits from central banks of member states, buying and selling gold and currencies, buying and selling securities that are available for listing, and lending or depositing funds to central banks of member states.

CEO, BIS Asia It can also conduct similar business with commercial banks and international institutions, but it must not provide loans to the government or open current accounts in its name. Many central banks in the world keep gold and hard currency at the Bank for International Settlements and earn corresponding interest.

3. Regular meetings of central bank presidents. On the first weekend of each month, the Bank for International Settlements holds meetings of the governors of central banks in major western countries to discuss international financial issues, coordinate financial policies of relevant countries, and promote cooperation among central banks in various countries.