Introduction

This chapter focuses on some of international organisations whose role impinges upon the ‘Offshore’ environment.

Bank for International Settlements

Founded in 1930, the Bank for International Settements (BIS) operates as a bank in that it processes transactions between the national central banks that comprise its membership. In fact, it is the ‘central bankers' bank’. In addition, the BIS operates as a research centre and a discussion forum for members – of whom there were thirty-two until 1997 when nine new members were invited to join by subscribing for shares. As at July 2005, the number of members had increased to fifty-six. The Board of Directors comprises representatives of the G10.

Basel Committee on Banking Supervision

‘The Basel Committee was established after the closure of Franklin National in the United States and the collapse of the Bankhaus Herstatt in Germany, in particular, as a result of heavy foreign currency losses suffered by each.’ In fact, ‘[n]ational bank supervision had until then [the early 1970s] been largely ignored at the Governors' meetings while national supervisory and regulatory authorities considered developments unfolding in international financial markets to be irrelevant’.