Foreword to the BIS Annual Report 2024/25 by the BIS General Manager

PDF version

It gives me great pleasure to present the BIS Annual Report for 2024/25. The report documents our achievements of the past year as we advance our mission to support central banks in their pursuit of global monetary and financial stability. 

The past year saw the completion of our strategic programme – Innovation BIS 2025. Six years ago, we set out on a path to transform the BIS with a clear aim to shape the Bank for tomorrow. The strategy established a bold vision and ambitious change agenda. As we conclude this strategic programme, I can say with great satisfaction that it has successfully transformed the BIS in ways that will bring value to the central bank community for many years to come. Today, the BIS is a more modern institution, reinvigorated by new capabilities that will allow it to move faster to adapt to the evolving needs of its stakeholders.

For central banks, the past year saw great progress in restoring price stability. Central banks' decisive policy response to the post-Covid-19 inflation surge had reinforced their credibility and prevented a high-inflation regime from setting in, allowing many to start lowering interest rates. Growth was generally solid too, albeit with some divergence across regions. Until recently, a global "soft landing" looked to be within reach.

In recent months, however, the global economic outlook has darkened. Uncertainty, not least about tariffs and the configuration of the global trade system, has emerged as a pressing threat to growth, inflation and financial stability. It is at times like these that international cooperation and dialogue among central banks is particularly valuable. In this context, the BIS continues to support central banks in delivering on their mandates. Our economic analysis has shed new light on evolving inflation dynamics and probed risks to financial stability. Meetings held as part of the Basel Process have provided a platform for discussion and collaboration to further strengthen the resilience of the financial system and shape the financial landscape of tomorrow. We have continued to explore how leading-edge technologies can address the challenges faced by central banks, regulators and supervisors, focusing on themes vital for the future of the financial sector.

For banking services, 2024/25 was an exceptionally strong year. Net profit was SDR 843.7 million, while total comprehensive income reached a record high of SDR 3.4 billion. Strong demand for BIS banking products saw currency deposits reach a new all-time high, while sustainable investment flows took green bond assets under management to record levels. Thanks to the investments made in the course of the Innovation BIS 2025 strategy, we are now able to offer our customers more products, with shorter development times, as well as longer trading hours and services that are better tailored to their specific needs.

Delivering the Innovation BIS 2025 strategy has been a collective endeavour, made successful by the strong commitment of our people. Through their efforts, the services the BIS provides to the central banking community have been broadened and recast to match the increasing sophistication of central banks and the array of challenges with which they are confronted. At the same time, the Bank's larger global footprint, expanded networks and new forms of collaboration have made it more responsive to its stakeholders, supported by expanded research activity and extended data capabilities.

The strategy's focus on innovation and the development of new capabilities has energised the Bank and strengthened its sense of purpose. The BIS is well positioned to adapt to future challenges and help our members to navigate an increasingly complex economic and financial landscape. 

As we present this report at our 95th Annual General Meeting, our mission has stood us in good stead. Exploring new economic realities while supporting financial stability, dialogue and knowledge-sharing is what the BIS has always done. It has been a privilege to lead this institution for the past seven and a half years. I want to express my deep appreciation to my colleagues at the BIS for their dedication. It is thanks to their efforts that the BIS is in such a strong position to face the future.

Agustín Carstens
General Manager