BANK FOR INTERNATIONAL SETTLEMENTS – INTERNATIONAL
News:
BIS warns world economy at critical juncture in inflation fight
What's in the news?
● The
world's central bank umbrella body, the Bank for International Settlements
(BIS), called for more interest rate
hikes, warning the world economy was now at a crucial point as countries
struggle to rein in inflation.
Key takeaways:
● Despite
the relentless rise in rates over the last 18 months, inflation in many top
economies remains stubbornly high, while the jump in borrowing costs triggered
the most serious banking collapses since the financial crisis 15 years ago.
Bank for International Settlements (BIS):
● BIS
is an international financial organization
owned by 63 central banks including
Indian Central Bank, representing countries from around the world that together
account for about 95% of world GDP.
● It
is established in 1930 at Hague Conference.
Features:
● It
fosters international monetary and financial cooperation and serves as a bank
for central banks.
Governance:
● BIS
Governance is exercised at three levels - Board of Directors, General Meetings
of member central banks and BIS Management - as determined by its Statutes.
Headquarters:
● It’s headquarter is in Basel, Switzerland.
● It
has two representative offices- in Hong Kong SAR and in Mexico City.
● It
has Innovation Hub Centers around the world.
Go back to basics:
Basel Accord:
● The
BIS is responsible for the Basel Accords, which recommend capital requirements
and other banking regulations that are widely implemented by national
governments.