Economy, asked by aishupawar64591, 11 months ago

Discuss the organisation and functions of Bank for International Settlements (BIS).

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Answered by bably66
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The Bank for International Settlements was established as an international financial institution for central bank cooperation on 17 May 1930, following the First World War. Its primary purpose at the time was concerned with the reparation payments imposed on Germany by the Treaty of Versailles, which included the collection, administration and distribution of annuities payable as reparations (and hence the name "Bank for International Settlements").

As the need for its reparations function ceases, the BIS takes up a role of a banker to the central banks and other international financial organizations, and provides a forum for promoting international cooperation, dialogue, as well as policy analysis among central banks and within the international financial community. Furthermore, it also acts as a centre for economic and monetary research

The Bank for International Settlements (BIS) is an international organization which fosters monetary and financial cooperation and serves exclusively as a bank for central banks. Therefore, it does not accept deposits from, or provide financial services to, private individuals or corporate entities. The BIS fulfils its mandate by acting as:

2.1 A forum to promote discussion and policy analysis among central banks and within the international financial community

Bimonthly meetings of the Governors and other senior officials of the BIS member central banks to discuss monetary and financial matters are instrumental in pursuing this goal. The standing committees located at the BIS support central banks, and authorities in charge of financial stability more generally, by providing background analysis and policy recommendations. These committees also help formulate international standards and best practices on the relevant matters.

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