The Bank for International Settlements is to buy out all private shareholders as part of a plan to restrict ownership to the world's central banks.

The Basel-based organisation will offer SFr16,000 per share. An extraordinary general meeting is to be held on January 8 to vote on the proposal.

BIS shares are traded in Switzerland and Paris. They last traded at SFr8,195 in Switzerland and at 4,050 euros in Paris. Trading was suspended on Monday but will resume on Tuesday.

Central banks now have just over 86 per cent of BIS shares and 100 per cent voting rights.

The BIS said in a statement that the existence of a small number of financial investors was "no longer seen to be in line with the international role and the future development of the organisation".

Shares withdrawn from private investors will be redistributed among central banks according to a formula determined by the extraordinary general meeting.

The BIS was originally set up in 1930 to handle Germany's war reparation payments but now serves primarily as a forum to promote cooperation between central bankers.

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