Little known BIS is an important Cog in the wheel of global fiancé now

The Bank, a product of First World War plays a premier role in flow of funds

- BY ANJAN ROY

If you happen to have transferred money from your bank account to another, you would in possibility have used the RTGS system. This is known but little is known about the RTGS platform and its evolution.

The RealTime Gross Settlement mechanism was primarily developed by the Bank for International Settlements (BIS) for settling accounts among banks of different nations. Later on, its use multiplied. Now, the BIS is the principal global standard setter for banks for facing banking risks with prudence.

Basle One, Basle Two and Basle Three are the three levels of capital requirements for banks with regard to their risks. That means, how much own capital the banks should maintain ion accordance with their business levels and volumes. These are the Basle capital adequacy ratios.

Thus, the Bank for International Settlements —BIS for short— is little known among the general public, but it plays a vital role in maintaining global financial stability. Countries have central banks as the ultimate guardian of price stability and monetary system. BIS is the central bankers' banker, in a way.

BIS celebrated its 95th foundation day on May 17 in the Swiss city of Basle when some of the key roles played by the institution were highlighted. BIS was established immediately in the aftermath of the Great War (1914 to 1918) to handle payment of German reparations to countries which had fought against Germany and claimed to suffered damages.