Bank for International Settlements definition
Bank for International Settlements
The Bank for International Settlements (BIS) is a global financial institution owned by central banks. Based in Basel, Switzerland, there are representative offices in Hong Kong and Mexico City.
The BIS's original members were Switzerland, Germany, Belgium, France, Britain, Italy, the United States, and Japan.
What is the role of the BIS?
The BIS was founded in 1930 to act as the clearinghouse for German war reparations imposed by the Treaty of Versailles.
The BIS is often described as the central bank for central banks because it supplies banking services to the ECB (European Central Bank) and the Federal Reserve as examples.
Its purpose is to encourage international monetary and financial cooperation globally, while providing banking services to central banks and other international organizations only.
The BIS carries out its duties through meetings and programs. It also conducts research on economic issues and publishes reports.