Bank of International Settlement

International Financial 1
Management
International Financial Management- By Karishma Chhablani, ICCS

Unit 2: International Financial 2
Institutes & BOP

Lecture Outline: 3
 Introduction: The Bank of International Settlements

 Role of the Bank of International Settlements
 Functions of BIS
 Current Issues and Challenges
 Conclusion: The Future of the Bank of International
Settlements

The Bank of International Settlements
4
(BIS)
 Headquartered in Switzerland, the BIS was founded in 1930 and is one of the
oldest financial institutions that has been constantly modifying its role in the
global market as per the needs of the global financial community. While the
main aim of BIS is to ensure monetary cooperation and financial stability, it
also acts as a bank to central banks like the Federal Reserve by providing
services like currency transactions and lending collateralized loans for short
periods of time.
 The Bank for International Settlements (BIS) is an international financial
institution that provides banking services to central banks across the globe and
helps in promoting financial stability through better coordination and
interaction between all the international financial institutions.
 Role of the Bank of
International Settlements 5
 The Bank of International Settlements (BIS) plays a crucial
role in maintaining financial stability across the globe. It
serves as a hub for central banks and other international
organizations to collaborate on issues related to monetary
policy, financial regulation, and payment systems.
 One of the key functions of the BIS is to facilitate
cooperation among central banks in order to promote
monetary and financial stability.
 This includes providing a forum for discussions and sharing
information on economic and financial developments, as
well as offering technical assistance and training to central
banks in emerging markets.

Functions of BIS 6
 Provides liquidity : It acts as a lender of last resort as it provides credit
services and purchases tradable financial instruments from central banks who
want immediate liquidity. It also takes up the role of a trustee for international
financial operations to ensure financial and monetary stability across the
world.
 Organizes workshops and publishes findings: The BIS hosts workshops and
sessions which address financial issues, provide insights on stability and
showcases work done by the Basel Committee on Banking Supervision
through FSI (Financial Stability Institute). BIS also publishes the research
done by its staff on foreign exchange, securities and the market as these help in
decision-making and better functioning.
Functions of BIS 7
Bank for central banks
 The Bank of International Settlements functions as a bank, and it competes with other
international financial organizations for banking activities. Its clientele comprises central banks
of its member countries, but it does not hold current accounts for individuals and governments.
 BIS offers premium services and high returns on invested funds as a way of attracting central
banks.
Lender of last resort
 As a banker to central banks, the BIS provides a wide range of financial services to assist
central banks and other monetary financial institutions in the management of foreign reserves.
Research and statistics
 The BIS publishes research and statistics on global banking, foreign exchange, financial
market securities, and derivatives market. The information is shared across its member central
banks to help in their functions and decision-making.
 Current Issues and Challenges
8
 One of the key challenges facing the Bank of International
Settlements (BIS) is the ever-changing regulatory
landscape. As financial markets become more complex
and interconnected, regulators are under increasing
pressure to ensure that they are able to effectively
monitor and regulate these markets. This has led to a
proliferation (rapid growth) of new regulations and
reporting requirements, which can be difficult for banks
and other financial institutions to navigate.
 The BIS plays an important role in helping to coordinate
these efforts and ensure that they are implemented in a
consistent and effective manner.

 Current Issues and Challenges
9
 Another major challenge facing the BIS
is geopolitical risk. With tensions
rising between major powers such as
the United States and China, there is a
growing risk of economic disruption
and instability.
 The BIS must remain vigilant in
monitoring these risks and working
with governments and other
organizations to mitigate their impact.

 Conclusion: The Future of the Bank
of International Settlements 10
 In conclusion, the Bank of International Settlements

plays a crucial role in the global financial system as a
forum for central banks to cooperate and address
common challenges.
 As we look to the future, it is clear that the bank will
continue to play an important role in promoting
financial stability and facilitating international
cooperation. With its strong track record and
commitment to innovation, the Bank of International
Settlements is well positioned to navigate the
challenges ahead and contribute to a more resilient
and prosperous global economy.
IInternational Financial Management- By Karishma Chhablani, ICCS
Lecture Outcome: 11
 Introduction: The Bank of International Settlements

 Role of the Bank of International Settlements
 Functions of BIS
 Current Issues and Challenges
 Conclusion: The Future of the Bank of International
Settlements

Bank of International Settlement

Uploaded by

Copyright:

Available Formats

Bank of International Settlement

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bank of International Settlement

Uploaded by

Copyright:

Available Formats

International Financial 1

International Financial Management- By Karishma Chhablani, ICCS

Institutes & BOP

International Financial Management- By Karishma Chhablani, ICCS

 Introduction: The Bank of International Settlements

International Financial Management- By Karishma Chhablani, ICCS

International Financial Management- By Karishma Chhablani, ICCS

International Financial Management- By Karishma Chhablani, ICCS

International Financial Management- By Karishma Chhablani, ICCS

 In conclusion, the Bank of International Settlements

 Introduction: The Bank of International Settlements

International Financial Management- By Karishma Chhablani, ICCS

You might also like