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Establishment of the Bank of International Settlements
The bank was initially created with the intention of facilitating pecuniary transfers that could arise within the framework of compensation obligations that appeared as a result of the peace treaties. -
Bretton Woods
Bretton Woods tried to end the protectionism of the period 1914-1945. It was considered that, to achieve peace, there had to be a free trade policy, where relations with the outside world would be established. The World Bank and the International Monetary Fund were created, using the US dollar as the international reference currency. -
Failure of Bretton Woods
It occurred during the Vietnam War, when the US ran a trade deficit for the first time in the 20th century. European countries began to exchange dollars for German marks and gold. Therefore, US gold reserves shrank. President Nixon prevented conversions from the dollar to gold and devalued it. The major powers began to abandon the gold standard, and the world economy became governed by a system of fluctuating exchange rates. -
Creation of the Banking Supervision Committee
It was established by the presidents of the central banks of the eleven member countries of the Group of Ten (G-10) at that time. It was established as a discussion forum to promote the improvement and convergence of banking supervision practices and regulations. -
Supervision of International Banking Institutions
Implementation of the "Principles for the Supervision of International Banking Institutions". -
Basel I
It was established for credit risk with the Cooke ratio that established a minimum required capital as a fixed percentage of assets weighted according to their credit quality. Capital must be at least 8% risk-weighted assets. -
Adding market risk
Amendment to consider market risk allowing banks to use internal models, such as Value at Risk. -
Basel II
The measurement of credit and market risk is updated. A new capital requirement for operational risks was also introduced. -
2008 Financial Crisis
Among the main factors attributed as causes of the crisis are failures in economic regulation, the overvaluation of financial products, a global food crisis, the rise in oil prices due to the invasion of Iraq by the United States. and the threat of a worldwide recession, as well as a credit-mortgage crisis and confidence in the markets. -
Basel 2.5/III
The stressed VaR measures, credit value adjustment (CVA), liquidity coverage ratio, stable net funding ratio, among others, are introduced.