chapter 10 Bank for International Settlements.pptVIP

The BIS carries out its work through subcommittees, the secretariats it hosts, and through its annual General Meeting of all members. It also provides banking services, but only to central banks, or to international organizations like itself.  Chapter 10 Bank for International Settlements I . Open Questions 1.What are the functions of BIS? 2.What are the types of BIS Board members? 3.Why did Basel Committee on Banking Supervision set forth the Basel Accord? 4.What was the transition of the Basel Accord since 1988? II. Teaching Plan This chapter will cover 3 hours. 2 hours for the introduction of background information and explanations of terms and the texts. And the other 1 hour for discussion and practice. III. Teaching Methods Translation of key sentences Paraphrasing of key words and expressions Explanation of new terms Summarizing of key passages Discussion of important issues Questions and answers: interaction between teachers and students IV. Background The Bank for International Settlements (BIS) is an intergovernmental organization of central banks which “fosters international monetary and financial cooperation and serves as a bank for central banks.” It is not accountable to any national government. V. Special Terms Credit risk 信贷风险 an investor’s risk of loss arising from a borrower who does not make payments as promised. Such an event is called a default. 信贷风险指由借款人不按照承诺付款，投资人面临承担损失的风险。这样的事件被称为违约。 Market discipline 市场规律 a market-based promotion of the transparency and disclosure of the risks associated with a business or entity. It works in concert with regulatory systems to increase the safety and soundness of the market. 市场规律以市场为基础，推广与业务或实体相关的风险的透明公开。它与监管制度双管齐下，共同增加市场的安全和稳健。 Capital adequacy 资本充足率 percentage ratio of a financial institution’s primary capital to its assets (loans and investments), used as a measure of its financial strength and stability. According to the Capital Adequacy Standard set by Bank for International S