The Bank for International Settlements (BIS)
Bank for International Settlements was established in 1930 by an intergovernmental agreement six countries (Belgium, Britain, Germany, Italy, France, Japan) and the Convention of the States and Switzerland, which operates in the bank. It is the oldest international organization in the field of international monetary and financial cooperation.
The bank was organized in conjunction with the Young Plan for implementation of the revised settlement of various fin. claims between the creditor countries associated with the payment of reparations after the First World War. Youngs plan was designed to replace the Dawes Plan for reparations payments, and the Bank for International Settlements (BIS) has assumed the role of the general agent. The Bank opened in May 1930 on the basis of the Swiss banking charter with the headquarters in Basel, Switzerland. The initial capital consisted of 200 thousand shares, divided equally between the central banks of the donors (Belgium, France, Germany, Italy, Japan, UK and USA), to-rye they can redeem themselves or sell to others. The U.S. share was 9.9%, but as Americans. government could not afford Amer. representative of the official. involved in obtaining reparations from Germany, a group of private banks instead presented a joint guarantee of the initial capital to subscribers. The entire share of the Amer. stock was sold at the Amer. market, with most of them went back to European holders. Japans share has also been transferred to the banking group and was bought by central banks – the founders of the BIS. Federal Reserve Bank of New York serves as the Amer. bank – correspondent BIS.
The Bank received 300 million dollars. profits from the first series of loans under the plan Young in May 1930 and distributed them among the governments of Germany and the creditor. The first months fin. report was published June 30, 1930 In addition to performing its primary mission of collection and transfer of German reparations for the purpose, the BIS also served other functions that are allowed under the statute: the protection rates (participation in a collective currency intervention), deposit transactions and transfers on behalf of the central banks, as well as the usual agency relationships with them. Before the Second World War, the bank performed various functions for the preparation and implementation of international financial agreements. During the Second World War, because its primary function, as well as the fact that most of its assets were German reparations, the BIS had to very closely monitor the fin. situation in Germany. The resolution of the Bretton Woods conference in 1944 contained a recommendation to eliminate the BIS, as organized by the IMF and the International Bank for Reconstruction and Development. Learn more about Fort Lauderdale Real Estate!
However, liquidation could be avoided, and subsequently became BIS act as technical agent under the Agreement on multilateral netting in accordance with the post-war intra-European agreement signed November 18, 1947, to-eye then guided all the countries, participating, participating in the program of the European recovery. The activities of the BIS was in the technical implementation of the compensation arrangements, including debit and credit account compensation payments under the agreements for the mutual settlements and the collection and analysis of statistics on payments under the agreements. Later, in 1948, at the request of the European Econ. Cooperation (Organization for European Economic Cooperation – OEEC), located in Paris, the organization of European countries participating in the program of the European recovery, the BIS agreed to continue as a technical agent in the subsequent agreement on intra-European payments and netting. This agreement was signed on October 16, 1948 in Paris, 16 state governments, in participating in the program of the European recovery, as well as representatives of the Anglo-American and French zones of Germany and the free zone, the Trieste. This agreement is operated in the form of monthly netting of accounts designed for intra-European payments, plus the use of drawing rights, and was subsequently extended for certain changes to the June 1950 BIS activities for the implementation of monthly transactions was almost a continuation of its technical features of the agreement 1948 .
With the increase of its capital BIS during its existence has greatly expanded its variety of activities, as evidenced by the following description of the current represented by the Federal Reserve Bank of New York. After 1948 he served agency functions for the Organization for European Economic Cooperation, first to implement intra-payments and compensation agreement entered into under the Marshall Plan, and then to implement the agreement establishing the European Payments Union. From 1959 to 1973. BIS acted as an agent of the credit operations of the European Fund and Mutual settlement systems in the European Monetary Agreement. In 1973 the bank became an agent of the newly formed European Monetary Cooperation Fund, which manages the exchange rate and credit operations of the European Union (EU) within the European Monetary System. In 1988, the bank has identified a minimum level of capital adequacy for banks: in 1990 the ratio of capital to assets at 7.15% rising to 8% in 1992 Since the summer of 1990, a special service of the Bank for International Settlements in providing technical assistance to central banks and bankers training in Central and Eastern Europe, former Soviet republics and several Asian countries, embarked on a transition to a market economy. Particular attention is paid Bank for International Settlements cooperation of central banks of the European Union.
The BIS also acts as a trustee, agent or depositary bank for international loans (eg loans of the European Coal and Steel Community). Bank for International Settlements served as the agent bank under the agreement on multilateral payments (1947-50), the European Payments Union (1950-58), the European Monetary Agreement (1959-72), the Agreement on Safeguards currency (1973-78) under the Organization for Economic Co-operation and Development, the European Monetary Cooperation Fund (1979-93). In October 1986 Bank for International Settlements – the agent bank for clearing accounts of private commercial banks in the ECU, the euro replaced in 1999. In connection with the debt crisis was the Bank for International Settlements from 1982 to a new function – to provide an interim loan guaranteed by the central bank, pending loan from the International Monetary Fund (IMF), as well as manage and invest the credit provision in favor of holders of long-term (15-30 years) dollar-denominated bonds issued by Brazil in accordance with the agreement to reschedule its foreign debt. BIS performs Fund and serves as clearing house for settlement between the Fund and the central banks of EU countries. The Bank also acts as a trustee in the provision of international government loans and conducts research on international banking. In exceptional cases, it provides loans to central banks to non-members. On the one hand, the BIS has the legal structure of joint-stock company, on the other – it is established as an international organization whose activities are governed by international law and shall enjoy the privileges and immunities necessary to carry out their functions. The Bank is not subject to any Swiss federal credit laws or regulations of Swiss company law. The current members of the Bank is 41 countries.
The objectives of the Bank for International Settlements: to promote cooperation among central banks, providing favorable conditions for international financial transactions, acting as trustee or agent for the international settlement of its members. With jur. point of view, the BIS is a corporation that specified in its charter as an international organization established on the basis of the Hague Agreement in 1930 is responsible for the activities of the banks board of directors. The Board of Directors consists of central bank governors of Belgium, France, Germany, Italy and the UK, as well as five representatives of the fin. business, industry and commerce, appointed one from each of the above five central banks to control. The status of the BIS provides that the 10 directors may elect other persons as co-opted directors from among the Governors of the central banks of Member States whose representatives have not yet included in the council. Governors of central banks in the Netherlands, Sweden and Switzerland are the co-opted member for many years and are members of the board of directors. The Board of Directors, consisting of 13 members, elected as chairman of the bank. As an international organization, the BIS performs some functions of trustee and depositary for the official. group. Wind., BIS provides the secretariat for the Committee of Governors of Central Banks of the European Community (Committee of Governors of the European Community (EC) central banks) and the Governing Council of the European Monetary Cooperation Fund (EFVS1) (Board of Governors of the European Monetary Cooperation Fund), and well as their sub-committees and expert groups involved in the preparation of documents for the central bank. Further, the BIS acts as an agent EFVS (EMCF), performing fin. transactions on the settlement of balances of accounts in the name of countries – EU Member States participating in Monetary Union. BIS is also responsible for the technical management of the system of mutual short-term monetary support for the EU and the transfer of payments related to the operations of the EUs borrowing.
After creating the BIS central banks allowed the participants to choose between their own subscription to the shares of the BIS and its implementation in their countries. Oak. 15% of the shares of the BIS were not purchased by central banks and is currently owned by private owners. Shares allocated to the United States, have not been purchased by the Fed, and were distributed on a subscription to a number of commercial banks. In 1930 the shares were purchased in the name of the First Nat. Bank of New York City (now Citibank, NA) (the First National Bank of the City of New York, now Citibank, NA) by a syndicate composed of J. Pi. Morgan & Company (JP Morgen and Company), First Nat. Chicago Bank (First National Bank of Chicago), First Nat. Bank of New York City. In 1930, the BIS ordered the First Nat. Bank of New York City to represent and to vote by proxy at the Amer. shares. Although all shares have equal rights to participate in the profits of the bank, private owners have no voting rights or representation at general meetings of the BIS. Management structure. A. The general meeting, led by Chairman of the Board of Directors and consisting of representatives of central banks or recognized financial institutions in individual countries. Votes shall be distributed proportionally to the number of shares that were allocated to the bank of each country on a subscription. Annual General Meeting approves the annual report and balance sheet, financial statement of income and expenses, decide on the allocation of funds in reserve and special funds, considering the announcement of the dividend and the amount for the coming year and relieve the Board of Directors from personal liability in respect of previous financial year . Two. The Board of Directors is responsible for managing the Banks current activities and represents the Bank in its dealings with third parties.
He enjoys the exclusive right to act on behalf of the BIS in transactions and agreements. The Board of Directors shall elect a Chairman from among the members of the Council, shall appoint the president of the Bank, the CEO and other members of the Administration. Three. President of the Bank is responsible for implementing decisions taken by the Board of Directors and supervises the activities of the Administration of the BIS. 4. The structure consists of the Administration Director-General, his deputy, the secretary-general, directors, managing the various departments. Capital. Fixed capital stock of 1.5 billion francs of gold divided by 600 thousand shares. Despite international agreement to replace the 1978 with the counting of the international monetary unit in the SDR, the BIS continued to use this as a franc to the gold content of 0.29 grams of pure gold, introduced in France in 1799 and from 1865 served as the single currency Latin Monetary Union. Overall, about 84% of the issued share capital held by central banks. The remaining 16% owned by private shareholders. Although all shares have equal rights in respect of payment of annual dividends on them, the private equity holders can not carry out a transfer of shares without the consent of the Central Bank and the BIS and have no voting rights or representation at general meetings. BIS is a bank of central banks. Almost all European central banks and central banks of the United States, Canada, Japan, Australia and South Africa are, or are closely related to various activities of the BIS. BIS assists central banks in the placement of foreign exchange reserves, provides a forum for international monetary cooperation, acting as agent or trustee in international loan agreements, as well as doing extensive research. By controlling the reserves of central banks, the BIS performs traditional forms of investment. Funds not claimed credit for the other central banks, are located on the World Fin. markets. The main forms of investment include deposits in commercial banks and the purchase of short-term transferable securities, including U.S. Treasury bills. These operations are now the foundation of the bank. BIS and other central banks lends the funds received as deposits from central banks. Credit transactions BIS may be in the form of swaps with gold, loans secured by gold, or easily marketable short-term securities, loans gold or placed in the BIS currency deposits by the same amount and with the same maturity, unsecured loans the form of advances or deposits and loans under the SBA . In addition, as different combinations of the above types of credit. In the field of foreign exchange transactions BIS is party to the agreement on the operations of the Fed swap . However, the BIS has no right to lend to governments and to open them to certain types of accounts. It is also not permitted in real estate transactions. By statute, the conduct of banking operations BIS must ensure that its actions do not contradict the den. policy of the central banks client. In addition, BIS periodically organizes meetings of experts to analyze economical., Currency and other issues of interest to central banks. He conducts research in the den. and monetary policy and theory. At the BIS has the responsibility to monitor the international fin. markets, creating a data bank for central banks in the Group of Ten countries and Switzerland, as well as for the preparation of a statistical survey of international banking. (Group of Ten countries consist of Belgium, Canada, France, Italy, Japan, Netherlands, Sweden, UK, USA and West Germany. Switzerland takes part in it.). Activity. Key areas of the Banks activities can be divided into the following categories: 1. Forum for international monetary cooperation, monitoring of banking activity, Economic and Monetary Cooperation in Europe. Two. Acting as a center of monetary and economic research to analyze the functioning of international financial markets and the harmonization of monetary policy for the most efficient performance of its functions by central banks (collecting and publishing data on the development of international banking, the management system of central banks). Three. Credit and banking operations: a) deposit and loan transactions with central banks, and b) receiving government contributions on special arrangements and c) foreign exchange operations and securities (other than shares), and d) investment services to central banks, and e) short-term financing of the central banks. The main source of resources – nearly 100 short-term deposits of central banks (about 10 percent. Worlds foreign exchange reserves). Bank for International Settlements puts them on deposit with reputable banks, buys liabilities, including treasury bills. In accordance with the Charter of the Bank of its operations should be consistent with the monetary policy of central banks in their respective countries. Bank is not allowed to open current accounts and provide loans to governments. Bank for International Settlements has gold reserves (0210 tons). Bank for International Settlements – a leading information and research center. 4.