Basil; Switzerland, at June 25., 2017
The Bank for International Settlements (BIS) announced, as part of its Annual General Meeting today, changes to its Statutes that will become effective in 2019. The changes will allow for greater flexibility in the composition of the Bank’s Board of Directors.
At present, and in line with Article 27 of the BIS Statutes, the BIS Board may have up to 21 Directors. These include six ex officio Directors (the central bank Governors of Belgium, France, Germany, Italy, the United Kingdom and the United States), who may each appoint another Director of the same nationality. Moreover, nine Governors of other member central banks may be elected to the Board.
At an Extraordinary General Meeting in November 2016, the BIS shareholding community approved a Board proposal to change Article 27. This is one of the few Articles whose change requires approval from the signatory governments to the Convention establishing the Bank in 1930 (the governments of Belgium, France, Germany, Italy, the United Kingdom and Switzerland). In May 2017, the government of Switzerland as host state notified the BIS that the changes to Article 27 had been approved by all six governments.
The new Article will come into effect in January 2019. The main changes will be as follows:
· The total number of Directors will be reduced from 21 to 18 to enhance the functioning of the Board.
· The six ex officio Directors will agree on the appointment of one Director - instead of six - from one of their nationalities.
· The number of elected Directors will be raised from nine to 11, enhancing the flexibility the BIS has to compose the Board.
BIS Chairman Jens Weidmann said today: “Changing Article 27 is a historic achievement for the BIS. It will significantly improve the balance between the different world regions represented on the Board. This can only benefit the governance of the BIS as a global institution.”
Source: The Bank of International Settlements