Bank For International Settlements (BIS)

Bank for International Settlements (BIS) is an international financial institution that serves as a regulatory body for all the different central banks around the world representing different nations. In simple terms, the BIS can be defined as a bank for all central banks.

A total of 63 jurisdictions are members of the BIS and are identified as the oldest international financial institution. With time, the functions and tasks of the BIS kept changing as it adapted to new and dynamic banking regulations and global banking community guidelines. Over the years, it also faced many financial challenges.

The Bank For International Settlements is an international organization that pertains to the needs, regulations, and management of different central banks across the globe. Each country, irrespective of its size and economy, has a central bank that narrates the rules and regulations for its currency, monetary policies, and financial structure. The BIS operates with the mission of responding to the challenges that are newly faced and the evolving nature of the global financial system and banking regulations.

The BIS functions as a pivotal platform for central banks to collaborate on monetary and financial matters. Serving as a bank for central banks, it facilitates services like international payments and currency transactions. Its primary mission is to promote financial stability and facilitate global monetary policies, with a broader role that encompasses cooperation and research among central banks. While the BIS primarily caters to central banks and international financial institutions, it does accept deposits from central banks and other international organizations. However, it does not engage in traditional retail banking activities for private individuals or companies.

Moreover, the BIS does not guarantee the accuracy or efficiency of any form of data or information and, therefore, is not liable for any loss, liability, expense, or damage in connection with any such material. The governors of central banks from emerging economies meet three times annually to discuss the issues, while other regular meetings are held for governors of small open economies.

The Bank for International Settlements was founded on 17 May 1930 and, over the years, has played a prominent instrument in the regulation and formation of the global economy and banking structure.

• The BIS was established under the Hague Conference and was acknowledged by the signatures of Belgium, Japan, France, Germany, Italy, and the UK from one side. Switzerland and other countries were on the other side.
• International cooperation became challenging during WWII, and BIS was responsible for shipping gold from Europe to New York on behalf of the European Central Banks.
• Post WWII, Europe was working to stabilize their different currencies, and the trade barriers were lifted; during this time, BIS was approached to become a technical agent for developing the European Payments Union.
• The success of EPU induced the Bretton Woods system worldwide, and international cooperation was once again observed at a higher level.
• The Asian and Russian crises in 1997 and 1998 resulted in the redevelopment of the financial structure, which led to the creation of the Financial Stability Forum.
• On 17 May 2020, the BIS celebrated nine decades of existence and active operations.

The Bank For International Settlements' functions are -

• The BIS regulates supervisory authorities for cooperation and forums of dialogue. It helps in information exchange and joint action initiation.
• It is vital in promoting financial stability and supporting central banks and other international financial institutions.
• BIS looks after implementing global regulatory standards, supervisory actions, operations, and practices.
• The BIS also fosters monetary stability and communication between the different central banks.
• BIS strives to innovate the financial and banking system through AI, big data, fintech, green finance, and digital currencies.
• One of the critical functions of the BIS is to develop several Innovation Hub Centres.
• Make banks understand the benefits and risks associated with new-age banking and financial services.
• BIS tends to respond to urgent short-term issues through economic analysis and policy-making.
• Build data that is freely available to the public regarding stats and information for banking transactions.
• As a bank, the BIS offers financial services to central banks, financial institutions, monetary authorities, and international organizations.

There are 63 nations, and their monetary authorities are the Bank For International Settlements members. The list in alphabetical order in terms of the nations follows as -

Certainly! Here's the list organized into a table format: