Why in the News?
The Bank for International Settlements (BIS) has cautioned that record-high global share prices appear detached from concerns over rising government debt.
About the Bank for International Settlements (BIS):
- Establishment: Formed in 1930, making it the world’s oldest international financial institution.
- Role: Known as the “central bank for central banks”, serving only central banks & international organisations, not private entities or governments.
- Headquarters: Basel, Switzerland; offices in Hong Kong & Mexico City.
- Membership: Owned by 63 central banks, covering ~95% of global GDP.
- Purpose: Promotes international monetary and financial cooperation and ensures global monetary stability.
- Functions:
- Platform for policy coordination & information sharing among central banks.
- Provides banking services: reserve management, gold/forex transactions, liquidity support.
- Acts as trustee/agent in global financial operations.
- Conducts research, training, and seminars on financial stability.
- Hosts Basel Committee on Banking Supervision (BCBS), which frames Basel norms.
India and the BIS:
- Membership: Represented by the Reserve Bank of India (RBI) as a full member.
- Representation: RBI Governor participates in BIS Board of Governors meetings.
- Participation:
- Engages in BIS research & policy discussions.
- RBI officials join working groups on supervision, stability, and fintech.
- Basel Norms: India, via RBI, has adopted Basel standards on capital adequacy, liquidity & risk management.
- Innovation Hub: Collaborates with BIS on digital payments, central bank digital currencies (CBDCs), and cross-border fintech solutions.
| [UPSC 2015] ‘Basel III Accord’ or simply ‘Basel III’ often seen in the news, seeks to
Options: (a) develop national strategies for the conservation and sustainable use of biological diversity (b) improve banking sector’s ability to deal with financial and economic stress and improve risk management* (c) reduce the greenhouse gas emissions but places a heavier burden on developed countries (d) transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals |
