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y The bank for international settlement (BIS) is the world s oldest international financial institution ,having been in operation since 1930. y The BIS is an international organization which fosters cooperation among central banks and other agencies in pursuit, of monetary and financial stability. Its banking services are provided exclusively to central banks and international organizations. y BIS from The federal reserve bank of New York highlights the important functions the Bank performs. y The bank for international settlement is a bank for central banks.

y Almost all European central banks as well as those of the united

states,CANADA,JAPAN,AUSTALIA,&SOUTH AFRICA, participate in or closely associated with various activities of the BIS.

y (BIS) organization whose function is to promote

cooperation between central banks and to facilitate international financial settlements; it is also a centre for economic and monetary research and has important trustee duties. Central banks of the main trading states are members, each providing a director to the board, which meets at least ten times a year. BIS is based in Basel, Switzerland.

y Base in Basle , Switzerland, the BIS assists central bank in

investment of monetary reserves which provides forum for international monetary corporation which act as a agent or trusty in carrying out international loan and agreements and conduct extensive economic research. y In managing the central bank fund the BIS engage in traditional types of investment . Funds not required for lending to other central banks are placed in world financial markets . The main funds of investment includes deposits with commercial banks and purchase of short term negotiable papers, including US treasury bill.

y In conducting bank operation the BIS is required by its

status to ensure conformity with the monetary policy of the central bank concerned. y Board of directors is responsible for bank operation and its comprised of the governors of central bank of Belgium, France west Germany ,Italy and united kingdom, as well as five representatives of finance, industry or commerce appointed one each by the governors of those five central banks. y As an international org. the BIS performs several trusty and depository functions for official groups.

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