Goal: A Financial Safety Net
The relatively narrow role the BIS plays today does not reflect its ambitions or historical role.
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 in 1930 as a means to enforce the Treaty of Versailles.
The BIS has historically had less power to enforce this "safety net" than it deems necessary. Recent head Andrew Crockett has bemoaned its inability to "hardwire the credit culture," despite many specific attempts to address specific concerns such as the growth of Offshore Financial Centres (OFCs), Highly Leveraged Institutions (HLIs), Large and Complex Financial Institutions (LCFIs), deposit insurance and especially the spread of money laundering and accounting scandals.
Read more about this topic: Bank For International Settlements
Famous quotes containing the words financial, safety and/or net:
“Just as men must give up economic control when their wives share the responsibility for the family’s financial well-being, women must give up exclusive parental control when their husbands assume more responsibility for child care.”
—Augustus Y. Napier (20th century)
“A lover is never a completely self-reliant person viewing the world through his own eyes, but a hostage to a certain delusion. He becomes a perjurer, all his thoughts and emotions being directed with reference, not to an accurate and just appraisal of the real world but rather to the safety and exaltation of his loved one, and the madness with which he pursues her, transmogrifying his attention, blinds him like a victim.”
—Alexander Theroux (b. 1940)
“Mental events such as perceivings, rememberings, decisions, and actions resist capture in the net of physical theory.”
—Donald Davidson (b. 1917)