USA will take control over the US-led Bank for International Settlements, which has overseen more than $100bn of global transactions and has long been the biggest beneficiary of the US dollar’s global dominance, according to a report by the US Financial Times.
The US will also hold control over key US financial institutions and their US subsidiary, the Bank for Financial Services, the report said.
“The US will take over all the key US-based institutions, including the Bank of America, Citigroup and JPMorgan Chase,” the report, published on Wednesday, said.
The banking system will continue to be run by a committee of the Bankers’ International Association, which is chaired by a retired US general.
“This committee will have full independence from the Treasury Department,” the FT said.
US Treasury Secretary Jack Lew told the FT the US would continue to have a “close and reliable relationship” with the BIS, which it had “been a great partner in building”.
The US also announced plans to expand its control over “the largest bank in the world” by holding it liable for its own mistakes.
“There will be a new set of regulations for the Bank,” the Treasury secretary said.
A separate report by Reuters said the US central bank is expected to approve the new US dollar-denominated banknotes, which are due to be printed and sold in March 2018.
US banks have said they will not switch to the new notes.
The banknotes will feature the names of US presidents, along with the words “America the Beautiful” and “Made in the USA”.
In addition to being used by the banking industry, the new currency is also used by many countries, including Germany, where the new dollar is known as Deutschmarks.
The BIS said the move would help the US economy “rein in its reliance on foreign currency”.