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Bank For International Settlement Essay

¶ … Bank for International Settlements The inception of the Bank for International Settlements

The Bank for International Settlements was created in 1930 pursuant to the Young Plan, also known as the Dawes Plan under the Hague Agreement (Baker 2). At its inception, the Bank for International Settlements (BIS) was to assume the responsibilities of the Agent General for Reparations in Berlin which consisted of collecting, administrating and distributing the annuities that were payable as reparations (BIS History -- Overview 1). These original responsibilities were the source of the BIS' name (BIS History- Overview 1). According to the BIS Web site, "The BIS was also created to act as a trustee for the Dawes and Young Loans (international loans issued to finance reparations) and to promote central bank cooperation in general" (BIS History -- Overview 2). As these original responsibilities were satisfied, the purpose of the BIS has also changed as discussed further below.

The purpose of the Bank for International Settlements

The original purpose of the Bank for International Settlements was "to facilitate and coordinate the reparations payments or settlements by the German government after World War I" (Baker 2). Today, the purpose of the Bank for International Settlements has expanded to include a number of...

These activities are conducted in a highly confidential fashion to the extent that the general public is largely unaware of the existence of the Bank for International Settlements (Baker 3). According to Baker, "Although it has not functioned as a facilitator of reparations settlements for nearly 70 years, the role for which it was formed, it has survived by adapting to the needs of a well-regulated and stable system of international financial arrangements" (3). In addition, the BIS has evolved into "a valuable institution as a talking-shop and meeting-place" (Baker 3). The current stated mission of the Bank for International Settlements is "to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for central banks" (About BIS 1). In sum, the Bank for International Settlements achieves the stated mission through the following:
Promoting discussion and facilitating collaboration among central banks;

Supporting dialogue with other authorities that are responsible for promoting financial stability;

Conducting research on policy issues…

Sources used in this document:
Works Cited

About BIS. (2014). The Bank for International Settlements. [online] available: http://www.bis.

org/about/index.htm.

Baker, James C. The Bank for International Settlements: Evolution and Evaluation. Westport,

CT: Quorum Books, 2002.
http://www.bis.org/about/history.htm.
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