Bank for International Settlements (BIS) is a Winner of the 2016 Global Sustainable Development Award and Accredited as a Global 500 Sustainable Development Agencies of the year 2016 in appreciation of its contribution towards social-economic development of the world and its contribution towards attainment of United Nations Sustainable Development Goals. Recognised for its commitment to attain Sustainable Peace and development thorugh pursuing financial stability and International Cooperation.Awarded and Accredited by Public Opinions International (Uganda-East Africa)
The Bank for International Settlements (BIS) is the world’s oldest international financial organisation. The BIS has 60 member central banks, representing countries from around the world that together make up about 95% of world GDP.It was established on 17 May 1930
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.
The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for central banks.
In broad outline, the BIS pursues its mission by:
- fostering discussion and facilitating collaboration among central banks;
- supporting dialogue with other authorities that are responsible for promoting financial stability;
- carrying out research and policy analysis on issues of relevance for monetary and financial stability;
- acting as a prime counterparty for central banks in their financial transactions; and
- serving as an agent or trustee in connection with international financial operations.
Monetary and financial stability is a precondition for sustained economic growth and prosperity. Reflecting the public good character of this goal, the BIS also makes part of its work available free of charge to the wider public, including:
- its own analyses of monetary and financial stability issues;
- international banking and financial statistics that underpin policymaking, academic research and public debate.
With regard to its banking activities, the customers of the BIS are central banks and international organisations. As a bank, the BIS does not accept deposits from, or provide financial services to, private individuals or corporate entities.
Banking services for central banks
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 BISIP structure is also used for the Asian Bond Fund (ABF) initiative sponsored by EMEAP (the Executives’ Meeting of East Asia-Pacific Central Banks) to foster the development of local currency bond markets. Further initiatives developed with a group of advising central banks have also been based on the BISIP structure. These include the BISIP ILF1 (a US inflation-protected government securities fund) and the BISIP CNY (a domestic Chinese sovereign fixed income fund).
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.
Products and services
The BIS has developed a range of banking services specifically designed to assist central banks, monetary authorities and international financial institutions in the management of their foreign exchange and gold reserves.
Central bank customers have traditionally looked for security, liquidity and return as the three basic features of their placements at the BIS.
- To provide security, the Bank has built up a sizeable equity capital and ample reserves. It pursues an investment strategy focused on combining diversification benefits with intensive credit and market risk analysis.
- To ensure liquidity, the Bank stands ready to repurchase its tradable instruments at little cost to its customers and thus respond quickly and flexibly to their needs.
- The BIS offers an attractive and competitive return on the funds deposited by central banks and international organisations.
BIS money market instruments
- Sight/notice accounts and fixed and floating-rate deposits in most convertible currencies
- Fixed-term deposits can also be denominated in and index-linked to a basket of currencies such as the SDR
- Standard and non-standard amounts and maturities
BIS tradable instruments
- Issued in major currencies
- Available in two forms: Fixed-Rate Investments at the BIS (FIXBIS) for any maturities between 1 week and 1 year and Medium-Term Instruments (MTIs) for quarterly maturities from 1 year and up to 5 years
- MTIs available also with an embedded call feature (Callable MTIs)
Foreign exchange and gold services
Services offered are:
- spot deals, swaps, outright forwards, options, FX-linked deposits
- foreign exchange overnight orders
- safekeeping and settlements facilities available loco London, Berne or New York
- purchases and sales of gold: spot, outright, swap or options
Asset management services
Fixed income portfolios are:
- invested in government bonds or high-grade credit securities
- structured as dedicated portfolio mandates or BIS Investment Pool (open-end funds)
- offered as either single currency or multi-currency mandates in the major world reserve currencies
Other services
- Short-term advances to central banks, usually on a collateralised basis
- Trustee for a number of international government loans
- Collateral agent functions
********************************************************************************************************************************************************************************************************************************************************
Public Opinions International
Plot 30 Suite 5, Level 4 Green Land Tower
Opposite Bank of Uganda Kampala Road
P.o Box 35297 Kampala-Uganda
Tel: 256 701 992 426
Email:[email protected]
Web: www.pubopinions.org
