The Board of Directors of the Bank for International Settlements (BIS) today appointed Mervyn King as Chairman of the Global Economy Meeting (GEM) and the Economic Consultative Committee (ECC). This will take effect as of 1 November 2011 and will be for a three-year term. Mr King's appointment followed consultations with members of the GEM.
Mr King, who is Governor of the Bank of England, was also announced today as the new chair of the Group of Governors and Heads of Supervision (GHOS) from November, following agreement with GHOS members. GHOS is the oversight body of the Basel Committee on Banking Supervision.
He will succeed Jean-Claude Trichet, who will relinquish all three chairs when he retires as President of the European Central Bank at the end of October. Mr Trichet has chaired the GEM and the GHOS since 2003, and the ECC since its creation in 2010.
The GHOS also today appointed Stefan Ingves, Governor of Sveriges Riksbank (Sweden's central bank), as the new Chairman of the Basel Committee on Banking Supervision.
Mr Ingves succeeds Nout Wellink, who relinquishes the Basel Committee chairmanship upon conclusion of his term of office as President of the Netherlands Bank at the end of June. Mr Wellink has chaired the Basel Committee since 2006.
The Global Economy Meeting (GEM) comprises the Governors from 30 BIS member central banks in major advanced and emerging market economies that account for about four fifths of global GDP. 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. Governors from several other central banks attend the GEM as observers.
The GEM has two main roles: (i) monitoring and assessing developments, risks and opportunities in the world economy and the global financial system; and (ii) providing guidance to the Basel-based central bank committees, especially the main three - the Committee on the Global Financial System, the Committee on Payment and Settlement Systems and the Markets Committee. The GEM also receives reports from the chairs of those committees and decides on publication.
The Global Economy Meeting is one of the principal bimonthly meetings held at the BIS.
The Global Economy Meeting is supported by an informal group, the Economic Consultative Committee (ECC). The ECC includes all BIS Board member Governors, the central bank Governors from India and Brazil, and the BIS General Manager. The ECC assembles proposals for consideration by the GEM. In addition, the ECC Chairman initiates recommendations to the GEM on the appointment of chairs of the main central bank committees and on the composition and organisation of those committees.
The Group of Governors and Heads of Supervision (GHOS) is the governing body of the Basel Committee on Banking Supervision and consists of central bank governors and (non-central bank) heads of supervision from the following countries: Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.
The Basel Committee on Banking Supervision provides a forum for regular cooperation on banking supervisory matters. It seeks to promote and strengthen supervisory and risk management practices globally. All member institutions of the GHOS are also members of the Basel Committee.