Question

Which institute is responsible to promote international cooperation among monetary authorities and financial supervision of officials through the Basel process?

• A. Bank of International Settlements
• B. International Finance Corporation
• C. International Monetary Fund
• D. International Development Association

Hint:

Whenever you see the term \textbf{Basel process}, immediately associate it with the \textbf{Bank of International Settlements (BIS)} and global banking regulation.

Answer 1

The Correct Option is A

Step 1: Understand the key phrase “Basel process”.
The Basel process refers to international cooperation on banking supervision and financial regulation.
It includes formulation of global banking standards and coordination among central banks and regulators.
This process is named after the city of Basel in Switzerland.
Step 2: Identify the institution headquartered in Basel.
The Bank of International Settlements (BIS) is headquartered in Basel, Switzerland.
It acts as a bank for central banks and facilitates global monetary and financial cooperation.
Step 3: Role of the Bank of International Settlements.
The BIS promotes international cooperation among monetary authorities.
It provides a forum for discussion and policy coordination among central banks.
It hosts important committees such as the Basel Committee on Banking Supervision (BCBS).
Through the Basel process, BIS supports global financial stability and regulatory harmonisation.
Step 4: Analyse option (B) — International Finance Corporation.
The IFC is a member of the World Bank Group.
Its main role is to provide loans and investments to the private sector.
It does not regulate or supervise monetary authorities.
Hence, option (B) is incorrect.
Step 5: Analyse option (C) — International Monetary Fund.
The IMF focuses on macroeconomic stability, balance of payments support, and financial surveillance.
It does not conduct the Basel process or host Basel regulatory committees.
Therefore, option (C) is incorrect.
Step 6: Analyse option (D) — International Development Association.
The IDA provides concessional loans and grants to the world’s poorest countries.
It has no role in banking supervision or the Basel process.
Hence, option (D) is incorrect.
Step 7: Final conclusion.
The institution responsible for promoting international cooperation among monetary authorities through the Basel process is the Bank of International Settlements.
Therefore, the correct answer is option (A).