Bank for International Settlements (BIS)

The Bank for International Settlements (BIS) isan international financial organization that unites the main banks of different countries. It was created to regulate relations between banks and to simplify international settlements between them. In addition, the BIS conducts research in the field of monetary policy and the economy of developed countries.

Bank for International Settlements
BIS Structure

With the multilateral activities of the BIS are connectedpractically all European central banks. The Bank for International Settlements helps to intelligently place foreign exchange reserves and is a kind of forum for currency cooperation between countries. At the same time, the BIS invests in traditional schemes using standard financial instruments (deposits in commercial banks, short-term investments in securities, and so on). Such operations are currently the main activity of the bank, as well as market statistics.

If we consider the BIS from a legal point of viewview, it is a corporation founded in 1930 on the basis of the Hague Agreement. The bank's activities are carried out under the supervision of the Board of Directors, which includes managers of the main banks of France, Belgium, Italy, Germany and the United Kingdom.

Currency market

BIS Activities

According to the approved charter, the Bank of Internationalcalculations has no right to conduct transactions with real estate, in addition, he is not allowed to provide loans to governments and opening individual accounts. In the course of banking operations of the BIS, the monetary policy of the central client bank must be taken into account.

The responsibility of the international financialThe institution also includes overseeing international markets and setting up a data bank for the central banks of ten countries - Canada, Belgium, Italy, France, Japan, Sweden, USA, UK, Netherlands, Germany and Switzerland.

The BIS consists of 56 central banks,including the Bank of Russia. The central office of the corporation is located in Switzerland (Basel). Despite the fact that some of the organization's functions are now transferred to the International Monetary Fund (IMF), the Bank for International Settlements continues to monitor mutual settlements between major banking institutions, issue loans and guarantees, accept deposits and act as a financial intermediary.

But the main function of the BIS remains the coordination of the actions of the main banks of different countries on the issues of the policy of credit and money relations. First of all, it is a currency market.

Statistics of the markets

Basel Committee

In 1974, for standardization andImprovement of the banking settlement system was created by the Basel Committee. It consists of representatives of the main banks, which meet four times a year to develop standards for the activities of banking institutions. First of all, the Bank for International Settlements, under the leadership of the Basel Committee, is known for its research and recommendations on the compliance of bank capital. It is worth noting that the recommendations of the committee are not mandatory, but mostly they are taken into account in the legislation of the participating countries.