Explain the Functions of Bank for International Settlement


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FUNCTIONS OF BIS:

The BIS day-to-day operations or functions are as follows:
(1) Gold Reserves Related: It buys and sells of gold coin or bullion for its own account or
for the account of central banks. It holds gold for its own account under reserve in
central banks. It accepts the supervision of gold for the account of central banks.
(2) Advances and loans to/from Banks: It makes advances to or borrowing from central
banks against gold, bills of exchange, and other short-term obligations of prime
liquidity or other approved securities. It opens and maintains current or deposit
accounts with central banks. It accepts deposits from central banks on current or
deposit account. It accepts deposits in connection with trustee agreements that may
be made between the BIS and governments in connection with international
settlements. It accepts such other deposits that, as in the opinion of the Board of the
BIS, come within the scope of the BIS functions.
(3) Bill Discounting, etc: Discounting, rediscounting, purchasing, or selling with or without
its endorsement bills of exchange, checks, and other short-term obligations of prime
liquidity. It discounts for central banks bills taken from their portfolio and
rediscounting with central banks bills taken from its own portfolio. It buys and sells
negotiable securities other than shares for its own account or for the account of
central banks;
(4) It buys and sells foreign exchange for its own account or for the account of central
banks;
(5) Agent Bank, Correspondent Bank: It acts as agent or correspondent for any central
bank, arranges with any central bank for the latter to act as its agent or
correspondent and enter into agreements to act as trustee or agent in connection
with international settlements, provided that such agreements will not encroach on
the obligations of the BIS toward any third parties.


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MT UVA BMS

MT UVA- University, Vocational and Affiliated Education for BMS

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