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Bank of International Settlements |
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The Bank for International Settlements or für Internationalen Zahlungsausgleich, as it is called in German is a global organization of central banks. The Bank for International Settlements aims at fostering cooperation among central banks and other agencies. The Bank for International Settlements pursues monetary and financial stability among the central banks. The Bank for International Settlements (BIS) has subcommittees and the secretariats to carry out its work. It organizes annual General Meeting of all members.
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The BIS provides banking services to central banks or to international organizations. The Bank for International Settlements is based in Basel, Switzerland. The Bank for International Settlements was established in 1930 by the Hague Agreement.
Bank for International Settlements has 55 member banks. The Bank for International Settlements aims at a transparent monetary policy among its member banks and makes monetary reforms from time to time. . It also involves the international monetary fund it achieving its goal. It pursuit of this goal the bank takes care of two main aspects of monetary policy thus adequate capital and transparency of reserves. The BIS maintains an international standard of capital or asset ratio among its member banks to secure and set the capital adequacy requirements. Reserve policy based on loans to consumers and individuals, makes the banks overburdened with loans. It is difficult to assess reserves accurately because of the regional differences of the banks. As a result the BIS fails to standardize any reserve rules internationally. However the Bank for International Settlements did try to set up some standard reserve rules for its members, which benefited lending money to private landowners and profit organizations giving loans to individuals.
With the founding of the Bank for International Settlements in 1930, the bank had set up some goals. It had aimed at providing a well-designed financial safety net under strong regulation and supervision and enforcing effective laws, sound accounting and forming new regimes. But the bank plays a comparatively narrow role displaying its inability to enforce this safety net.
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