By Fawaz Karami
KUWAIT, Aug 4 (KUNA) -- The Central Bank of Kuwait's (CBK) membership in the Bank for International Settlements (BIS) added momentum to Kuwait's weight in global monetary policies and outlining frameworks of monetary stability in the wake of economic turmoils caused by the coronavirus pandemic.
CBK attended BIS annual general meeting in June, making Kuwait the 63rd member thus joining other members to formumating international monetary and banking supervision policies.
Established 91 years ago, BIS is the oldest international financial institution and has been playing a number of key roles in global economy, from settling reparation payments imposed on Germany following World War One, to serving central banks in their pursuit of monetary and financial stability.
With the escalation of political and military tensions in late 1930s, BIS played a key role in transporting gold of central banks from Europe to safe warehouses in New York, US.
BIS supported central banks in strengthening monetary and financial stability, particularly follwoing World War Two when the world changed course towards re-engineering global financial order, and coordinate among central banks over international criteria.
BIS is affiliated with the Basel Committee on Banking Supervision, which develops global supervision and practices criteria.
CBK, through its membership, contributes to these criteria and is active within BIS to coordinate cyber-flexibility.
BIS is owned by central banks, which develop financial and monetary policies as well as supervision criteria.
BIS members represent 95 percent of the global gross product.
CBK Governor Dr. Mohammad Al-Hashel, in remarks during the BIS June meeting, said CBK membership was in line with pursuing its goal to strengthen relationships with international financial institutions, and to fortify its role in developing monetary and prudential policies.
The BIS, he said, provides central banks a forum for dialogue and broad international cooperation to pursue global monetary and financial stability. It also provides a platform for responsible innovation and knowledge sharing, and in-depth analysis and insights on core monetary and macro-prudential policy issues. (end) fnk.bs