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Banking. International financial institutions (lecture notes)

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International financial institutions

International regional monetary and financial organizations - institutions created on the basis of interstate agreements for the purpose of regulating international economic, including monetary and financial relations. These organizations include: the Bank for International Settlements, the International Monetary Fund, the International Bank for Reconstruction and Development, and regional development banks.

The Bank for International Settlements (BIS) is the first interstate bank organized as an international bank of central banks, organized in 1930 by a number of issuing banks in England, France, Italy, Germany, Belgium, Japan and a group of American banks headed by the Morgan banking house.

One of the tasks of the BIS was to facilitate the settlement of German reparation payments and war debts, as well as to promote cooperation between central banks and settlements between them. The BIS still retains its main function of the coordinator of the central banks of the leading developed countries and currently performs deposit and loan operations, currency, stock transactions, purchase and sale and storage of gold, acts as an agent of central banks, makes settlements between the countries of the European Monetary System, performs functions as a depository of the European Coal and Steel Associations, performs operations on behalf of the OECD and its member countries. Being a Western European international bank, it carries out interstate regulation of monetary and credit relations.

The International Monetary Fund (IMF) is an international monetary and credit organization with the status of a UN specialized agency. The official goals are: to promote the development of international trade and monetary cooperation by establishing norms for the regulation of exchange rates and control over their observance, a multilateral system of payments and the elimination of foreign exchange restrictions; providing member states with foreign currency funds to equalize the balance of payments. In 1947, the fund included 49 countries, in 1991 - 155. Votes among countries in the governing bodies of the IMF are distributed in accordance with the quota of contributions established for each of them, the value of which depends on the economic development of the country and its role in the world capitalist economy and international trade .

Member countries of the IMF are required to provide it with information on official gold reserves and foreign exchange reserves, the state of the economy, balance of payments, money circulation, foreign investment, etc. These data are used by private banks to determine the solvency of borrowing countries.

It is important to note that a country's membership in the IMF is a prerequisite for its entry into the International Bank for Reconstruction and Development, as well as for obtaining soft loans from its subsidiary, the International Development Association.

The International Bank for Reconstruction and Development (IBRD) is a specialized agency of the United Nations, an interstate investment institution, established simultaneously with the IMF. The official goal of the IBRD is to assist member countries in developing their economies by providing long-term loans and credits, guaranteeing private investment.

The sources of the bank's resources, in addition to equity capital, are the placement of bond issues, mainly in the US market, and funds received from the sale of bonds.

IBRD usually provides loans for up to 20 years to expand the production capacity of the bank's member countries. They are issued under the guarantee of the governments of the member countries. IBBR also provides guarantees for long-term loans from other banks. Like the IMF, it requires the obligatory provision of information on the financial position of the borrowing country, the facilities being lent, and the content of the bank's mission examining these facilities.

In recent years, the IBRD has dealt with the problem of settling the external debt of developing countries and provides structural loans to regulate the structure of the economy and improve the balance of payments.

In addition to the IBRD, the following financial institutions have been established: the International Development Association (IDA) (the main purpose is to provide soft loans to developing countries), the International Finance Corporation (established to encourage the investment of private capital in the industry of developing countries) and the Multilateral Investment Guarantee Agency (implements investment insurance against political risk in the event of expropriation, war, civil unrest, and broken contracts).

In addition, regional banks emerged in the 60s (Inter-American Development Bank, African Development Bank, Asian Development Bank), the main purpose of which is to develop economic cooperation and integration of developing countries, to overcome external dependence.

The regional monetary organizations of the Common Market include: the European Investment Bank (EIB), the European Monetary Cooperation Fund (EUFS) and the European Bank for Reconstruction and Development (EBRD), of which Russia is a member and whose main goal is to play the role of a stimulator and accelerator for attraction of capital in the infrastructure sector of the countries of Central and Eastern Europe, which will contribute to the speedy transition of the Eastern European countries to economic stability and the introduction of the convertibility of their currencies.

Author: Shevchuk D.A.

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