BIS holds risk summit

by Gill Montia

Story link: BIS holds risk summit

Representatives of the world’s leading banks have been invited to Basel in Switzerland by the Bank of International Settlements (BIS), The Financial Times has reported.

According to the newspaper, a meeting arranged for the coming weekend has been called to address fears that financial institutions are returning to excessive risk taking.

Executives from Citigroup and private equity group, BlackRock, are named as attendees.

Last month BIS analyst, Leonardo Gambacorta, argued that low interest rates can encourage banks to take on more risks through a search for yield and the impact of interest rates on valuations, incomes and cash flows, which can modify how banks measure and price risk.

The BIS was established in 1930 and describes itself as is an international organisation which fosters international monetary and financial cooperation and serves as a bank for central banks.

As such it plays an important role in the development of international regulation.