Organisation and governance - Overview
At the end of the 2013/2014 financial year, the BIS employed 656 staff members from 57 countries.
It is headquartered in Basel, Switzerland, and has three main departments. Two departments encompass the two principal activities of the BIS - policy analysis and banking - and the third provides general internal support (organisation chart):
- Monetary and Economic Department: Undertakes research and analysis to shape the understanding of policy issues concerning central banks, provides committee support and organises key meetings of senior central bankers and other officials in charge of financial stability. In addition, the department collects, analyses and disseminates statistical information on the international financial system.
- Banking Department: Provides a range of financial services to support central banks in the management of their foreign exchange and gold reserves and invests the equity of the BIS.
- General Secretariat: Provides the entire organisation with comprehensive corporate services, including human resources, facilities management, security, finance, communications and IT.
These departments are further supported by the Legal Service, the Risk Control unit, the Internal Audit unit, and the Compliance and Operational Risk Unit.
Furthermore, the BIS's Financial Stability Institute facilitates the dissemination of the standard-setting bodies' work (see below under Governance of the BIS-hosted committees) to central banks and financial sector supervisory regulatory agencies.
The BIS also has two regional offices:
- the Representative Office for Asia and the Pacific, in Hong Kong; and
- the Representative Office for the Americas, in Mexico City.
Governance of the BIS
The governance and management of the Bank are conducted at three principal levels:
At each of these levels, governance is exercised and management decisions are taken on the BIS's cooperative activities, the policy analysis in support of monetary and financial stability, banking operations and the internal allocation of resources throughout the BIS.
The BIS hosts nine committees and groups, which are all part of the Basel Process.
The Global Economy Meeting (GEM) 1 provides guidance to three central bank committees:
- the Committee on the Global Financial System (CGFS);
- the Committee on Payments and Market Infrastructures (CPMI); and
- the Markets Committee.
The GEM oversees the organisation of these committees and appoints the chairs; receives reports from the committees and decides on publication; and provides guidance on work priorities. A smaller group of central bank Governors in the Economic Consultative Committee (ECC) 2 supports the GEM by preparing proposals for discussion and decision by the GEM.
The All Governors' Meeting 3 oversees the work of two groups whose membership is broader than that of the GEM:
- the Central Bank Governance Forum; and
- the Irving Fisher Committee on Central Bank Statistics (IFC).
The Group of Governors and Heads of Supervision (GHOS), which consists of the central bank Governors and non-central bank heads of supervision of the 27 GHOS member jurisdictions, oversees the Basel Committee on Banking Supervision (BCBS), which is the primary international standard-setting body for banking regulation and supervision.
The other groups participating in the Basel Process each have a separate legal identity and their own governance arrangements:
- The Financial Stability Board (FSB) seeks to enhance global financial stability by developing policies and coordinating the work of national financial authorities and international standard-setting bodies. It operates under a mandate from the G20 heads of state and government.
- The International Association of Insurance Supervisors (IAIS) is the international standard-setting body for the supervision of the insurance sector. Its membership of insurance supervisors and regulators come from about 140 jurisdictions.
- The International Association of Deposit Insurers (IADI) provides guidance on creating and maintaining effective deposit insurance systems. Its members represent deposit insurance agencies from more than 70 jurisdictions.
Several groups that are part of the Basel Process set international standards, which have to be adopted nationally according to national legal arrangements and processes to become binding.
1 The members of the GEM are the central bank Governors of Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, the Netherlands, Poland, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, Turkey, the United Kingdom and the United States and also the President of the European Central Bank and the President of the Federal Reserve Bank of New York. The Governors of another 19 central banks attend the GEM as observers; they are from Algeria, Austria, Chile, Colombia, the Czech Republic, Denmark, Finland, Greece, Hungary, Ireland, Israel, Luxembourg, New Zealand, Norway, Peru, the Philippines, Portugal, Romania and the United Arab Emirates.
2 The ECC includes all Board member and observer Governors, and the BIS General Manager.
3 The All Governors' Meeting includes all 60 BIS member central banks.