Based in Basel, Switzerland, the Bank for International Settlements is a central bank for the central banks of the G10 countries. It was established in 1930 and its original function was to administer the reparation payments imposed on Germany by the Treaty of Versailles. Since 1930 it has played a pivotal role fostering monetary policy co-operation, collecting and analysing financial data, as well as performing traditional banking functions for the central bank community, such as gold and foreign exchange transactions.
It calls itself the world's oldest international financial organisation. It accepts deposits from its members and makes advances to them, while also operating as a forum for regular meetings aimed at ensuring the stability of the international monetary system. Its Basel committee for international banking supervision sets global standards for commercial banks' capital adequacy, called the Basel ratios.
In June 2013 the BIS urged central banks to hold their nerve as they started to exit monetary easing policies even if there was volatility but stressed that it was not calling for an immediate tightening of monetary policy by all central banks.