Bank for International Settlements
The Bank for International Settlements is an international financial institution that serves as a bank for central banks and supports monetary and financial stability.
Meaning in Practice
The BIS provides a forum for central bank cooperation and hosts committees such as the Basel Committee on Banking Supervision. It conducts research, facilitates policy coordination, and offers banking services to central banks. Its headquarters are in Basel, Switzerland.
Why It Matters
The BIS plays a central role in shaping global banking standards and macroprudential policies. It promotes cooperation to address systemic risks and financial crises.
Market Impact
BIS research and policy coordination influence global regulatory standards and capital requirements. Markets often respond to Basel framework updates developed under its umbrella.
Example
The Basel III framework, developed by the Basel Committee hosted at the BIS, introduced stricter capital and liquidity rules for banks worldwide.