Basel and the Financial Sector

Hey everyone, at the beginning I would like to welcome you all to my new contribution and hope you all have a week which has brought numerous experiences into your life so far! Today I would like to share something about the financial system and show you what an important role Basel plays in it.

Switzerland is generally known for playing an important role in the financial sector and one of the major cities in this context is the old city of Basel. Unlike other cities which are known for their loose regulations, Basel is not a stock exchange location like London but a central place for the entire system of finance and it can also be described as a kind of node in the middle of this complex system. If there are adaptations to this system, here is the think tank and then these regulations are transferred to the global financial markets and some of the well-known examples are decades-old rules such as Basel I and their successors which were first adopted in Basel and then enforced on a global level.

The Basel framework can also be referred to as international standards for banks, which have the main task of ensuring the stability of the financial system and to achieve this goal, rules are applied that contain different factors like limits or risk factors as well as other important measures. Often these rules that have been drawn up by the Basel Committee are confused with laws, but this is wrong and it is more about standards and the core here is that it's the responsibility of the respective countries themselves to adapt them to laws. In Basel is one of the oldest institutions of the financial sector which has existed for almost 100 years and is also known as Bank for International Settlements or BIS for short.

In order to better describe the task, it's first important to understand that the BIS is, so to speak, a kind of central control centre for central banks worldwide and forms an important platform for the international exchange or cooperation of important positions in the financial sector, which includes the exchange of current news or experiences. It's also a lot about recognising crises and then finding solutions to them and if there are problems with payment transactions in a country, possible solutions are discussed here which have the goal of ensuring stability and it is important to recognise the effect and in some cases to adapt the standards. It can also be said that Basel is especially the capital of banking because of the regulatory aspects and it's an important centrepiece of the global system on which standards for the international central banks are written. In addition, there is also the fact that many banks throughout the area have their location here and these are both national or international players.

Thank you very much for stopping by and I hope you could learn something new and like my post! I captured these pictures with my Sony Alpha 6000 plus 55-210 mm, iPhone 16 and created these Illustrations with the help of AI.