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The Bank for International Settlements (BIS) is fundamentally an international organization of central banks. It serves as a bank for central banks, providing a forum for monetary and financial cooperation and offering banking services to its member institutions. The BIS facilitates international financial stability by acting as a mediator and a source of information regarding monetary and financial policy issues among its member central banks.
The significance of the BIS lies in its role as a coordinator of central banking activities on a global scale, allowing central banks to collaborate and share information on monetary policy, financial stability, and economic issues. This pivotal position enables the BIS to contribute to the effectiveness of central banking operations and the integrity of the international financial system.
Understanding the functions of the BIS clarifies why it is categorized as an international organization of central banks rather than a regular financial institution, private venture, or regulatory body for international trade, which have distinct roles and structures.