| The Bank for International Settlements (BIS) is a financial international organization established under the Hague agreements of 1930. It was later joined by the International Monetary Fund and World Bank
set up under the Bretton Woods agreements of 1944.
Essentially, the Bank seeks to influence reserve policy among the central banks of members. It
has historically had less power to do so than it deems necessary. Recent head Andrew Crocket has bemoaned its inability to "hardwire the credit culture" - stating this as an
objective.
The Bank sees this as necessary to address specific concerns with growth of Offshore Financial
Centres (OFCs), Highly Leveraged Institutions (HLIs), Large and Complex Financial
Institutions (LCFIs), deposit insurance and the spread of money
laundering and accounting scandals.
A "well-designed financial safety net, supported by strong prudential regulation and supervision, effective laws that are
enforced, and sound accounting and disclosure regimes," are among
the Bank's goals. In fact they have been in its mandate since its founding. Critics of capitalism, including notably figures with unique experience like George Soros, argue that there is no will to enforce such regulation in the present competitive financial
industry, where effectively nations compete to offer less regulation.
Doubts about the Bank's mandate, its program, its effectiveness, and the desirability of any existing institution taking the
lead role in accounting reform, especially in light of serious
failures of money-laundering law enforcement, major breaches of prudence and supervision in the United States (e.g. Enron), have led to some minor critique of the BIS in the anti-capitalism and anti-globalization movements.
For instance, its attempts to "hardwire the credit culture" ignore the efforts of ecological economics to tie that credit culture to the science of ecology, and means of measuring well-being. The Bank seeks predictability, say its
critics, rather than true sustainability. Criticism has been muted in comparison with that focused on IMF, the World Trade Organization and World Bank policies,
however.
The BIS has played a central role in establishing the Basel Capital Accords of 1988 and 2004.
Management
- General Manager: Malcolm D
Knight ([1] (http://www.bis.org/about/biomdk.htm)) (1 April 2003 -). Andrew Crocket (- 1 April 2003).
External links
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