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
The head office is in Basel, Switzerland and there are two
representative offices: in the Hong Kong Special Administrative Region
of the People's Republic of China and in Mexico City.
Established on 17 May 1930, the BIS is the world's oldest international
financial organisation.
As its customers are central banks and international organisations, the
BIS does not accept deposits from, or provide financial services to,
private individuals or corporate entities. The BIS strongly advises
caution against fraudulent schemes.
Banking services for central banks
The BIS offers a wide range of financial services specifically designed
to assist central banks and other official monetary institutions in the
management of their foreign exchange reserves. Some 140 customers,
including various international financial institutions, currently make
use of these services.
On average, over the last few years, some 6% of global foreign exchange
reserves have been invested by central banks with the BIS and as of 31
March 2008, total currency deposits amounted to SDR 236 billion. BIS
financial services are provided out of two linked trading rooms: one at
its Basel head office and one at its office in Hong Kong SAR.
The Bank continually adapts its product range in order to respond more
effectively to the evolving needs of central banks. Besides standard
services such as sight/notice accounts and fixed-term deposits, the Bank
has developed a range of more sophisticated financial products which
central banks can actively trade with the BIS to increase the return on
their foreign assets. The Bank also transacts foreign exchange and gold
on behalf of its customers.
In addition, the BIS offers a range of asset management services in
sovereign securities or high-grade assets. These may be either a
specific portfolio mandate negotiated between the BIS and a central bank
or an open-end fund structure – the BIS Investment Pool (BISIP) –
allowing customers to invest in a common pool of assets. The two Asian
Bond Funds (ABF1 and ABF2) are administered by the BIS under the BISIP
umbrella: ABF1 is managed by the BIS and ABF2 by a group of external
fund managers.
The BIS extends short-term credits to central banks, usually on a
collateralised basis. From time to time, the BIS also coordinates
emergency short-term lending to countries in financial crisis. In these
circumstances, the BIS advances funds on behalf of, and with the backing
and guarantee of, a group of supporting central banks.
The Bank's Statutes do not allow the Bank to open current accounts in
the name of, or make advances to, governments. The BIS does not accept
deposits from, or generally provide financial services to, private
individuals or corporate entities. |
