The expansion, announced yesterday, was intended to bolster the bank's influence over the world's financial markets by reflecting the changing balance of global economic power. Pressure for expansion at the BIS, which has 32 members, has been mounting in recent years, partly due to the growing importance of financial markets in Asia and Latin America and their prominence in recent financial crises.
The Basle-based organisation said it had invited Banco Central do Brazil, the People's Bank of China, Hong Kong Monetary Authority, Reserve Bank of India, the Bank of Korea, Banco de Mexico, Central Bank of Russian Federation, Saudi Arabian Monetary Agency, and the Monetary Authority of Singapore to join by participating in the bank's next issue of new equity.
It reflects the BIS's need to redefine its role in the face of the growing importance of the European Monetary Institute, the precursor of the European Central Bank. The EMI, based in Frankfurt, has provided an additional forum for top European central bankers to meet and left non-European BIS members determined to achieve a more global feel.
