Promoting global monetary and financial stability

Section 3 from BIS Annual Report 2018/19

The BIS provides a platform for central bankers and other authorities to serve them in their pursuit of monetary and financial stability. It does so by helping to build a greater collective understanding of the world economy, fostering international cooperation and supporting policymaking.

Economic research, analysis and statistics

Research at the BIS provides value added to central banks in their pursuit of monetary and financial stability and responds to the current and foreseeable challenges facing the central bank community.

To do this effectively, the BIS draws strength from its unique position at the intersection of research and policy in those areas, leveraging its close contacts with the central banking and financial supervisory community, and its production of banking and financial statistics.

Highlights in 2018/19

Over the past year, important work has tackled current major challenges facing the central bank community: monetary policy in the post-crisis environment, the impact of port-crisis regulatory reforms and the broader implications of technological innovation. Policy collaboration has further intensified. 

Banking activities

The BIS provides a full range of banking services to central banks and other official sector clients. Its banking activities include deposit-taking, mostly in the form of money market and tradable instruments, the provision of gold and foreign exchange services, and the off-balance sheet asset management of fixed income investment products.

The Bank also manages its own capital, a large part of which is invested in sovereign debt denominated in the constituent currencies of the Special Drawing Right (SDR, a basket of currencies defined by the IMF), which serves as the Bank's unit of account.

Innovation BIS 2025 for banking services

During the past financial year, the BIS developed an ambitious agenda that will enhance its banking activities as part of the Innovation BIS 2025 strategy. Under the new strategy, more emphasis will be placed on the Banking Department's various outreach efforts and the improved delivery of services in the various client regions. Additionally, the BIS is committed to supporting finance and investment practices which are environmentally responsible and facilitate the transition towards an environmentally sustainable economy.

Financial Stability Institute

The Financial Stability Institute contributes to the BIS's goal of promoting international cooperation. Its mandate is to assist central banks and financial regulatory and supervisory authorities worldwide in strengthening their financial systems by supporting the implementation of global regulatory standards and sound supervisory practices.

The FSI pursues this mandate through its three main activities: policy implementation work, outreach events and online training for financial sector authorities.

Representative Offices

The BIS has two representative offices: one for Asia and the Pacific (the Asian Office), located in Hong Kong SAR, and one for the Americas (the Americas Office), located in Mexico City.

They serve as centres for BIS activities in those regions, strengthening relationships and promoting cooperation between the BIS and regional central banks and supervisory authorities.