Concept
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The Bank for International Settlements (BIS) was founded in 1930 as a vehicle for repatriation of assets after World War I. After its original function was complete, it became a forum for financial cooperation among its members, which are primarily central banks (their current membership is comprised of 60 central banks). Today, it is best described as a ‘central bank for central banks’, as its primary function is to support central banks in their ‘lender of last resorts’ function, which is achieved through:
Providing the member central banks with access to liquidity, by buying back tradeable instruments from them at competitive rates, Offering research and statistics, and facilitating workshops, discussions and think-tanks related to pertinent financial issues, Providing the member central banks with access to gold- and foreign-exchange transactions, and Acting as a holder of reserves for central banks.
The BIS has significant influence and input into global financial market regulation due to its role as a statistical researcher and disseminator and its membership in other committees and regulatory
bodies.