The Bank for International Settlements (BIS) proves to be the oldest international financial organization in the world, established by central banks of world on May 17, 1930. Today, it has 60 member central banks, whose economies collectively represent an impressive 95% of the world’s total Gross Domestic Product.
Commonly referred to as BIS, this institution carries a noble purpose. Its primary objectives are to provide support to member central banks in their pursuit of financial and monetary stability, to function as a bank for these central banks, and to foster international financial collaboration in the interest of achieving stability.
The BIS global headquarters is located in Basel, Switzerland, and it has two significant regional representative offices: one in Hong Kong, the Special Administrative Region of China, for Asia-Pacific, and another in Mexico City for the Americas.
These regional offices serve as focal points for various BIS activities, working to enhance cooperation between the central banks and supervisory authorities of their respective regions and the BIS itself. They facilitate the exchange of data and information, organize seminars and meetings, and disseminate economic and financial research pertinent to the Americas and Asia.
Another important the Bank for International Settlements lies in its provision of banking services. The regional offices play a key role in delivering these services to the Americas and Asia-Pacific regions. As part of this mission, officers regularly visit the reserve managers of member central banks. The Asian office is equipped with a treasury dealing room that offers daily trading functions specifically for regional central banks.
The BIS established its Representative Office of the Americas in Mexico City in November 2002. This move was aimed at expanding the bank’s regional activities in the Americas, in better coordination with the headquarters in Switzerland. To further enhance its understanding of regional issues, the BIS formed the Consultative Council for the Americas in May 2008. This advisory committee consists of central bank governors from member central banks in the Americas region, including those from the United States, Peru, Mexico, Colombia, Chile, Canada, Brazil, and Argentina.
The bank’s Asian presence was solidified on July 11, 1998, with the founding of the Representative Office for Asia and the Pacific in Hong Kong. This office serves multiple functions: it acts as a regional forum for economic and monetary research beneficial to central banks, provides settlement and exchange banking services to regional central banks, and works to improve cooperation among the various member central banks in the Asian region.
Like its Americas counterpart, this office also maintains an Asian Consultative Council, comprising central bank governors from member central banks in the Asia-Pacific region. Its membership includes representatives from Thailand, Singapore, the Philippines, New Zealand, Malaysia, Korea, Japan, Indonesia, India, Hong Kong, China, and Australia.
The BIS distinguishes itself from other banks worldwide in several significant ways. Its clientele is exclusively composed of international organizations and central banks; it does not open accounts for international companies or private individuals. The BIS refrains from offering financial or advisory services to investors or corporations. Furthermore, it neither accepts deposits from nor extends loans to entities other than central banks or international organizations. However, the bank does make some of its research available free of charge to companies and members of the public, demonstrating its commitment to sharing knowledge and insights with a broader audience.
