Bank of International Settlement

Bank for International Settlement

The Bank of International Settlement was founded in 1930 after World War I by a group of central international banks. The purpose was to promote cooperation of central banks, provide additional facilities for international operations, and to act as a trustee or agent in regard to international financial settlements. (Wood, 2005) It was designed to be the bank of central banks. It was given power in law to work on the behalf of the banks to build their economies and promote cooperation between the international banks.

World War I was fought using borrowed funds that had to be repaid. Germany was already facing impending collapse due to the Versailles Treaty of 1919 imposing reparations, which required them to pay 132 billion gold marks per year. The central banks founded BIS with the headquarters in Basle, Switzerland. It took the power to control...
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