Bank for International Settlements (BIS)

Definition

The central bank of central banks. Founded in 1930 in Basle (Switzerland) by major European banks to serve as a coordinator of German reparations (arising from first world War) BIS has evolved into a key player in the management and supervision of the international financial system. It assists member countries (which now include most European nations and Australia, Brazil, Canada, China, India, Japan, Korea, Mexico, Russia, Saudi Arabia, Singapore, and South Africa; plus the US as a non-member participant) in ironing out short-term currency fluctuations. It also hosts monthly meetings for major central banks, and publishes a widely influential annual review of the state of the global banking system.