The bank for international clearing payment (BIZ) (English: Bank for internationally Settlements TO) with seat in Basel is the oldest international financial organisation. She administers parts of the international currency reserves and applies thereby quasi as bank of the central banks of the world. The center of the BIZ referred 1977 in Basel close at the station SBB 70 m a high multistoried building round tower, which by the architect Martin Burckhardt was sketched.

History

The bank for international clearing payment became 1930 of the central banks of Belgium, Germany, France, Great Britain, Italy, as well as two groups of private banks from Japan and from the United States establishes. Originally it should guarantee the solvency of Germany in connection with the reparation payments. 1931 with attitude of the German reparations due to the world economic crisis were already void this task to a large extent. The German pecuniary difficulties had given however only the last impact for creation to an organization, which promotes co-operation as "“bank of the central banks"” between these and them possibilities for new business open.

After the Second World War it took its work and their statutes was in such a way changed that all European central banks became, also those of the socialist countries (with exception of the Soviet Union and the GDR) members. Between 1962 and 1971 their main point of work lay with the co-ordination of the reaction to monetary crises, in close co-operation with the decade (G10), in which the issuing banks of the ten of most important were represented members of of the International one Monetary Fund and Switzerland, which were at that time not yet member of the IWF. Since 1971 with the end of the system of firm rates of exchange, new topics arrived in the focus, so the Euro-currency markets, the bank and the supervision of insurance.

Structure

The BIZ is a corporation with seat in Basel. Their authorized capital stock amounts to 1.5 billion gold Franconia. The capital is divided in 600.000 shares to 2500 gold Franconias. These can be held after the new statutes only by central banks, which could not be converted however in fact yet. A gold Franconia corresponds somewhat more to than 0.29 g Feingold, which was the gold parity Swiss Franconia on establishment of the BIZ in the year 1930. However this relation plays a role only with the production of the balance, while the current business of the BIZ is completed mostly in dollar. Although it formally concerns a Swiss corporation, the BIZ applies for contract after that Hague as an international organization and is subjected thereby international law. Shareholders are central banks and despite the new statutes exist still some private shareholders. The latters resist at present to be obligatorily compensated. (see)

Highest organ of the BIZ is the once in the year taking place general assembly. The management is incumbent on the board of directors. Belong to this after the statute of the BIZ ex officio the presidents of the central banks of the initial members Belgium, France, Germany, Italy, Great Britain as well as the chairman board of the OF Governours of the American issuing bank, which this office notices however only since 1994 again. Up to nine further presidents of other central banks can be selected into the board of directors. The board of directors selects a chairman and the president of the BIZ, whereby since 1948 between both offices personnel union exists. Furthermore it appoints the general manager and the further members of the management. The general manager is a representative of the president.

By March 2002 to at the end of February 2006 dresses Nout Wellink, president of De Nederland bank, the office of the president. Designate successor is its Swiss colleague Jean Pierre Roth.

49 central banks seat and voice in the general assembly had beginning of 2001. Beside the countries of the decade these are since 1999 also the European central bank, the central banks of all Western European countries, most transformation countries in Eastern Europe, the most important asiatic developing countries, the largest Latin American national economies, as well as the People's Republic China, India, Saudi Arabia as well as South Africa.

Tasks

The BIZ administers parts of the currency reserves of numerous countries and international financial establishment ions in its function as bank of the central banks. With the BIZ deposited funds about 7% of the world currency reserves constituted end of 2000; about 120 central banks ranked thereby among their clientele. The inserts are held as highly liquid plants and are therefore rapidly available. Increasingly the BIZ offers itself to the central banks also as Investmentbank, so that they obtain higher net yields with their currency reserves. In some cases the BIZ grants also short term credits. It finances for each individual case also credits forwards, which are guaranteed by the World Bank or by the International Monetary Fund.

The BIZ is statutory at the same time a forum of the international cooperation in financial questions and money. This happens in the context of informal meetings on the occasion of the general assemblies and the conferences of the board of directors. However the BIZ in the course of the years also a number of concrete tasks were transferred. Like that it, when in the course of the sixties first tensions arose in system of firm rates of exchange (Bretton Woods), was involved in numerous supporting actions for European currencies. For the treatment of technical questions numerous committees and working groups were formed. Before the background of the globalization of the financial markets and the rapidly growing transnational flows of capital the BIZ than supervisory board over institutions for financial market at meaning attained.

In the range of the credit institutes this is the Basler committee for state supervision of the banks, which 1974 had been brought into being as reaction to a set of Bankenpleiten. From the work of the committee the "“Basler concordat"” resulted to the state supervision of the banks. Since 1988 minimum requirements apply to the own capital funds equipment of internationally active banks, with which up to then valid different regulations in the individual countries were harmonized. Were demanded own capital funds, which constitute at least 8% of the active. The rules are only minimum requirements, which converted the individual countries into national right. In Basel II starting from 2007 the minimum requirements obligatory in the European union are fixed to the Eigenkapitalaustattung. The USA will gradually convert the regulations starting from 2008.

With the range of the insurance the international combination of the insurance departments (international Association OF Insurance of supervisor, IAIS) is concerned, whose secretariat has their seat since January 1998 with the BIZ. The combination was created 1994 and is to formulate internationally recognized principles and standards for an effective supervision of insurance in their more than 100 member countries.

Finally the BIZ dedicates itself also and - theory, which publish her in papers and contributions to scientific magazines, and general restaurant analyses, which appear in their quarter report to research in the area of the monetary policy. Besides she collects numerous data from the range of her members and arranges her to an international bank statistics, which is quarterly published. Of importance for the evaluation of land risks and that promptly recognizing financial crises are above all the data for the international indebtedness of the countries, whose results in co-operation with OECD, International Monetary Fund and World Bank are published.

Literature

• The mysterious BIZ. The bank for international clearing payment becomes 75. Off: Analyse+kritik No. 498 from 16 September 2005

Related links

• Bank for international clearing payment
• History of the BIZ 1930-1945, out: Hofer, Walther and Reginbogin, Herbert R.: Hitler, the west and Switzerland. 1936-1945. Zurich 2001, publishing house NZZ, ISBN of 3-85823-882-1 excerpts of P. 485-489.

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