Thursday, December 8, 2022

The Bank For International Settlements: What Is It And What Is It Responsible For?

What is the Bank for International Settlements?

The BIS is a bank.

It’s a universal bank. And it’s the central banking authority for over 190 nations.

It provides financial oversight for the global banking community.

It acts as a central clearing house for cross-border payments. It works with central banks and central securities depositories to settle transactions.

The BIS and global financial stability

With $58 trillion in assets, the Bank for International Settlements (BIS) is the third largest bank in the world and probably the most powerful bank in the world when it comes to regulating global finance.

The BIS is like the shadow central bank of the world, it is headquartered in Basel, Switzerland and the headquarters of the United States Federal Reserve is in Washington, D.C. The BIS is the central bank for international banking, it oversees the world’s largest central banks and is not controlled by member central banks, but by the central banks of the member central banks.

The new Basel Capital Rules

Basel is the acronym that stands for Basel III, the third iteration of the Basel Accords, a set of measures and guidelines that stipulate how banks should operate, and the capital and liquidity requirements that those banks must maintain. To reduce systemic risk, banks must hold more capital and liquidity, and how those requirements are calculated and enforced can be complex.

There have been various attempts at reducing the capital requirements for banks, which has affected their profitability in many ways, including higher operating costs and the increased interest on credit default swaps that their investors demand.

Combating money laundering and terrorist financing

The Bank For International Settlements, or BIS for short, is a private banking cartel that is not governed by any government. The BIS, the source for some of the Bankster’s favorite myths, produces the Basel Accords, which are basically international laws which essentially say that central banks can no longer hold any fractional reserve and that banks have to account for every single bit of money that they hold. That’s the system they’re trying to create, which is controlled by them, and they go around saying “we’ve done away with the fractional reserve and that we’re not holding any of this money because we’ve reduced the amount of reserves.” It’s a total lie.

The BIS and emerging markets

This week, there have been two notable developments at the Bank for International Settlements: it may expand its influence by creating an International Payments System and it may be restructured to strengthen its independence.

The first incident involves the Bank’s President, Claudio Papadimitriou, confirming that he has applied for the International Payments System and noted that the IOSCO-CA has accepted the application. This is the same group of regulators which oversees the Bank for International Settlements.

This may explain why the BIS is beginning to embrace this new system; the IOSCO-CA. The IOSCO-CA has also stated that it would consider the creation of a payment system for the BIS.

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