Final answer:
The Bank for International Settlements (BIS) operates as the banker for central banks. It facilitates collaboration and information exchange among central banks and plays a vital role in maintaining financial stability.
Step-by-step explanation:
The Bank for International Settlements (BIS) operates as the banker for central banks. It serves as a hub for central banks to collaborate and exchange information on monetary and financial stability matters.
For example, the BIS facilitates international transactions between central banks, acts as a forum for central banks to discuss and coordinate policies, and provides research and analysis on global economic and financial developments.
Therefore, the BIS plays a crucial role in maintaining financial stability and promoting cooperation among central banks worldwide.