An Assessment of the Bank for International Settlements
42 Pages Posted: 13 Jan 2007
Date Written: December 1999
This article reviews the role of the Bank for International Settlements (BIS) and its adaptability to the changing international financial structure, from the gold standard to floating exchange rates. Today, the BIS has assumed the role of creator of international standards for banks and financial conglomerates through the Basel Committee on Banking Supervision. Its implied mission is to prevent international financial crises and to mitigate negative externalities when they occur. The overall assessment of the BIS is positive. Its small membership gives it a sense of purpose and minimizes free riding. Given the high degree of financial integration in the world and consequent large spill-overs, the BIS would have to be created if it did not already exist.
Keywords: international organization, financial regulation, policy coordination
JEL Classification: F33, F34, F42
Suggested Citation: Suggested Citation