HC Deb 12 May 1983 vol 42 cc412-3W
Mr. Arnold

asked the Chancellor of the Exchequer, pursuant to his answer of 5 May, Official Report, c. 112, if he will list in the Official Report the 29 countries with voting or representative rights in relation to the Bank for International Settlements; if he will list the circumstances in which others may exercise such rights; and if he will make a statement.

Mr. Bruce-Gardyne

Details of the United Kingdom's interest in the Bank for International Settlements were published in theOfficial Report on 26 April—[Vol. 41, c. 291] — but holdings of BIS shares by other central banks are a matter for the central banks concerned and the BIS. The central banks of Belgium, France, Germany, Italy, Netherlands, Sweden, Switzerland and the United Kingdom are represented on the board of directors of the BIS. Should the central bank of any country not wish to exercise its rights to vote at the general meeting, they may be exercised by a financial institution of widely recognised standing and of the same nationality appointed by the board of directors of the BIS and not objected to by the central bank in question.

Mr. Arnold

asked the Chancellor of the Exchequer, pursuant to his answer of 5 May, Official Report, c. 112, if he will take steps to obtain details of present shareholdings and of changes since May 1979 in the Bank for International Settlements; and if he will make a statement.

Mr. Bruce-Gardyne

Since ownership of Bank for International Settlements shares does not automatically confer voting or representative rights detailed knowledge about other countries shareholdings would be of little practical significance. The operations of the Bank for International Settlements are a matter for its board of directors.

Mr. Arnold

asked the Chancellor of the Exchequer what information he has as to the constitution and operations of the Bank for International Settlements; if, pursuant to the answer of 5 May, Official Report, c. 112, he will give precise details of the circumstances in which shareholdings confer voting or representative rights; and if he will make a statement.

Mr. Bruce-Gardyne

A summary of the Bank for International Settlements' activities is included in the published annual report. The constitution of the BIS was set down in the statutes, given in a White Paper in 1931, Cmnd. 3766. A few changes have since been made, principally to allow more central banks to subscribe to shares and to give the board more flexibility in setting the annual dividend. Under the statutes the right of representation and of voting, in proportion to the number of shares subscribed in each country, may be exercised by the central bank of the country or its nominee.