The Bank for International Settlements (BIS) has decided to expand its central bank membership base and to increase collaboration by inviting central banks of more emerging market economies to join its membership base and committees.
Established in 1930, BIS is owned by 60 central banks, representing countries from around the world that together account for about 95 per cent of world’s gross domestic products (GDP). BIS offers financial services to a broad client base comprising some 140 central banks, monetary authorities and international organisations worldwide. Nigeria is not yet a member of BIS.
In a statement, BIS stated that the planned inclusion of more emerging market economies is in recognition of the significant growth of emerging markets and their increasing interconnectedness to the global market over the past decade.
According to BIS, the expansion will ensure that it remains true to its mandate as a forum for international cooperation and as a hub for central banks and other financial authorities.
The BIS Board has decided to invite the central banks of Kuwait, Morocco and Vietnam to become members of the BIS. This is the first such expansion since 2011 and will take the number of members to 63.
Also convening in Basel, the Global Economy Meeting (GEM) agreed to expand the membership of two of the central bank committees based at the BIS, the Committee on the Global Financial System (CGFS) and the Markets Committee.
The CGFS, a central bank forum for monitoring and analysing broad financial system issues, will invite Argentina, Russia, Saudi Arabia, South Africa and Thailand to join. This will take the number of central bank members to 28.
The Markets Committee, which monitors financial market developments, will invite Indonesia, Malaysia, Russia, South Africa and Turkey to join. This will take the number of central bank members to 27.
Chairman, Bank for International Settlements (BIS), Jens Weidmann said reviewing membership at regular intervals ensures that the membership base remains in keeping with the bank’s global profile and its mandate to promote global monetary and financial stability.
Chairman, Global Economy Meeting (GEM), Mark Carney noted that with the expansion, emerging market economies (EMEs) would make up about two fifths of the membership of each committee.
“In the last decade, EMEs have become much larger and ever more connected to the global financial system. Having a representative range of views on financial market and monetary matters will benefit the citizens of EMEs and advanced economies alike,” Carney said.