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Bank For International Settlements

Oct 19, 2014




With immense please we are presenting BANK FOR INTERNATIONAL SETTLEMENTS Project report as part of the curriculum of PGDM. We wish to thank all the people who gave us unending support.

I express my profound thanks to Mr.Rahul Magan , project guide and all those who have indirectly guided and helped us in preparation of this project.

I also like to extend our gratitude to all staff and our colleagues of College of Management, who provided moral support, a conductive work environment and the much-needed inspiration to conclude the project in time and a special thanks to my friends who are integral part of the project.

Thanking you. Suyash Krishna


Assistant General ManagerBad LossCash CreditCurrent DepositDemand DraftDeputy General ManagerDeputy Managing DirectorJanata Bank Limited, Farmgate CorporateBranchJanata Bank Deposit and Pension SchemeManaging DirectorMail TransferOver DraftOther LoanPrincipal OfficerSavings Bank AccountSmall LoanSmall and Medium EnterprisesSenior OfficerSenior Principal OfficerSub StandardShort Term DepositTelegraphic TransferUnclassified


Executive SummaryTheBank for International Settlements(BIS) (in French,Banque des rglements internationaux(BRI)) is aninternational organizations of central bankswhich "fosters international monetary and financial cooperation and serves as a bank for central banks. As an international institution, it is not accountable to any single national government.The BIS carries out its work through subcommittees, the secretariats it hosts and through an annual general meeting of all member banks. It also provides banking services, but only to central banks and other international organizations. It is based inBasel,Switzerland, with representative offices inHong KongandMexico City.As an organization of central banks, the BIS seeks to makemonetary policy more predictable and transparent among its 58 member central banks. While monetary policy is determined by each sovereign nation, it is subject to central and private banking scrutiny and potentially to speculation that affectsforeign exchange rates and especially the fate of export economies. Failures to keep monetary policy in line with reality and makemonetary reformsin time, preferably as asimultaneous policyamong all 58 member banks and also involving theInternational Monetary Fund, have historically led to losses in the billions as banks try to maintain a policy usingopen marketmethods that have proven to be based on unrealistic assumptions.Central banks do not unilaterally "set" rates, rather they set goals and intervene using their massive financial resources and regulatory powers to achieve monetary targets they set. One reason to coordinate policy closely is to ensure that this does not become too expensive and that opportunities for privatearbitrageexploiting shifts in policy or difference in policy, are rare and quickly removed.Two aspects of monetary policy have proven to be particularly sensitive, and the BIS therefore has two specific goals: to regulatecapital adequacyand makereserve requirementstransparent.

Registered offices of the BISThe BIS maintains no office, branch, or affiliate other than those listed below.

Location:Centralbahnplatz 2BaselSwitzerland

Postal Address:CH-4002 Basel


Fax:(+4161)2809100 and(+4161)2808100


Representative Office for Asia and the PacificLocation:78th floor, Two International Finance Centre8 Finance Street, CentralHong KongSpecial Administrative Region of the People's Republic of China

About BISThe mission of the Bank for International Settlements (BIS) is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for central banks.In broad outline, the BIS pursue its mission by:promoting discussion and facilitating collaboration among central banks;supporting dialogue with other authorities that are responsible for promoting financial stability;conducting research on policy issues confronting central banks and financial supervisory authorities;acting as a prime counterparty for central banks in their financial transactions; andserving as an agent or trustee in connection with international financial operations.The head office is in Basel, Switzerland and there are two representative offices: in the Hong Kong Special Administrative Region of the People's Republic of China and in Mexico City.Established on 17 May 1930, the BIS is the world's oldest international financial organization.As its customers are central banks and international organizations, the BIS does not accept deposits from, or provide financial services to, private individuals or corporate entities. The BIS strongly advises caution againstfraudulent schemes.

Organization and governance

The BIS's peopleThe BIS currently employs647 staff from 54 countries.All members of staff are required to behave in accordance with general principles laid down in the staffcode of conduct. TheBIS Compliance Charter describes the guiding principles for managing compliance at the Bank.

Governance structuresThe governance of the Bank is determined by itsStatutes, which were last revised in June 2005 following areview of the governance of the Bankby three leading independent legal experts.The three most important decision-making bodies within the Bank are:the General Meeting of member central banks

theBoard of Directors

theManagementof the Bank

Decisions taken at each of these levels concern the running of the Bank and as such are mainly of an administrative and financial nature, related to its banking operations, the policies governing internal management of the BIS and the allocation of budgetary resources to the different business areas.The Bank's administrative and budgetary rules apply to thecommitteeshosted by the BIS. Other aspects of the committees' governance are the responsibility of the body to which each reports.

General MeetingsThe BIS currently has 60 member central banks, all of which are entitled to be represented and vote in the General Meetings. Voting power is proportionate to the number of BIS shares issued in the country of each member represented at the meeting.At theAnnual General Meeting, key decisions by member central banks focus on distribution of the dividend and profit, approval of the annual report and the accounts of the Bank, adjustments in the allowances paid to Board members, and selection of the Bank's external auditors. The Annual General Meeting is held in late June/early July.Extraordinary General Meetings must be called in order to amend theStatutesof the Bank, change its equity capital or liquidate the Bank.

Member central banksMembers are the central banks or monetary authorities of:Algeria, Argentina, Australia, Austria, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, Chile, China, Colombia, Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong SAR, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Japan, Korea, Latvia, Lithuania, Luxembourg, Macedonia (FYR), Malaysia, Mexico, the Netherlands, New Zealand, Norway, Peru, the Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Thailand, Turkey, the United Arab Emirates, the United Kingdom and the United States, plus the European Central Bank.

Board of DirectorsThe Board is responsible for determining the strategic and policy direction of the BIS, supervising the management, and fulfilling the specific tasks given to it by the Bank's Statutes. It meets at least six times a year.Four advisory committees assist the Board in its work:The Administrative Committee reviews key areas of the Bank's administration, such as budget and expenditures, HR policies and IT. The Committee's Chairman is Jens Weidmann.TheAudit Committeemeets with internal and external auditors, as well as with the compliance unit. Inter alia, it examines matters related to the Bank's internal control systems and financial reporting. The Committee is chaired by Luc Coene.The Banking and Risk Management Committee reviews and assesses the Bank's financial objectives, the business model for BIS banking operations, and the risk management frameworks of the BIS. The Committee's Chairman is Stefan Ingves.The Nomination Committee deals with the appointment of members of the BIS Executive Committee and is chaired by the Board's Chairman, Christian Noyer.The Board of Directors may have up to 21 members, including six ex officio directors, comprising the central bank Governors of Belgium, France, Germany, Italy, the United Kingdom and the United States. Each ex officio member may appoint another member of the same nationality. Nine Governors of other member central banks may be elected to the Board.In addition, one member of theEconomic Consultative Committeeserves as observer to BIS Board meetings, on a rotating basis. The observer participates in the Board's discussions and may be a member of one or more of the four committees which assist the Board in its work.The Board of Directors elects a Chairman from among its members for a three-year term and may elect a Vice-Chairman.The Board has adopted Codes of Conduct formembers of the Board of Directorsand forthe observerat meetings of the Board of Directors.

General Managers


Jaime CaruanaSpainApril 2009 present

Malcolm D. KnightCanadaApril 2003 September 2008

Sir Andrew CrockettUnited KingdomJanuary 1994 March 2003

Alexandre LamfalussyBelgiumMay