Bank for International Settlements
|Bank for International Settlements|
|Products||International organization that fosters the cooperation of central banks and international financial institutions|
The Bank for International Settlements (BIS) is an international organization fostering the cooperation of central banks and international financial institutions. Established in 1930, it is the world's oldest international financial organization. It is headquartered in Basel, Switzerland, and has two representative offices: one in the Hong Kong Special Administrative Region of the People's Republic of China and one in Mexico City. It serves as a central bank for other central banks.
The BIS in May of 2017 released the final version of its code of conduct for the global foreign-exchange market. The code was designed to improve transparency and fairness in ethics, governance, execution, information sharing, compliance and trade settlement in FX trading in response to investigations into fraud committed by FX traders at a number of major banks.
In its 2019 annual report, BIS said that big tech companies like Amazon and Google had begun seeking to offer payment services or other financial services to customers more than ever before. The report said that the technology used by these companies had the potential to improve global financial inclusivity by reducing costs associated with existing financial services, thereby lowering the barrier of entry for financial services for unbanked or underbanked people. It mentioned the development of Facebook's stablecoin Libra a number of times. In the report, BIS described the potential for big tech companies offering payment systems, such as Libra, to undermine banks, and highlighted the significant regulatory issues that would need to addressed, such as privacy issues, the tendency for big tech companies to lack the consumer protection expertise of existing financial institutions, and the fact that these services, though they technically compete with banks, still depend on banks to function.
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- "Bank for International Settlements”. BIS.
- About the BIS. BIS.
- BIS Releases New Set of Standards for Currency Trading. The Wall Street Journal.
- BIS Wants ‘Level Playing Field’ for Banks Amid Threat from Facebook. Coindesk.
- Big tech in finance: opportunities and risks. Bank for International Settlements.