The BIS was formed in 1930, the main actors in the establishment of the BIS were the then Governor of The Bank of England, Montague Norman and his German colleague Hjalmar Schacht, later Adolf Hitler's finance minister. The Bank was originally intended to facilitate money transfers arising from settling an obligation arising from a peace treaty. After World War I, the need for the bank was suggested in 1929 by the Young Committee, as a means of transfer for German reparations payments - see Treaty of Versailles. The plan was agreed in August of that year at a conference at the Hague, and a charter for the bank was drafted at the International Bankers Conference at Baden Baden in November. The charter was adopted at a second Hague Conference on January 20, 1930.
The original board of directors of the BIS included two appointees of Hitler, Walter Funk a prominent Nazi official, and SS officer Oswald Pohl, both convicted at the Nuremberg trials after world war II, as well as Herman Schmitz the director of IG Farben and Baron von Schroeder, the owner of the J.H.Stein Bank, the bank that held the deposits of the Gestapo.
After the Second World War, in 1944 at the Bretton Woods Conference The BIS became the crux in a fight that broke out between the Americans, Harry Dexter White, Secretary of the Treasury Henry Morgenthau, and the British delegation headed by John Maynard Keynes and Chase Bank representative Dean Atchison, who tried to veto the dissolution of the bank.
As a result of allegations that the BIS had helped the Germans loot assets from occupied countries during World War II, the United Nations Monetary and Financial Conference recommended the "liquidation of the Bank for International Settlements at the earliest possible moment." This task, which was originally proposed by Norway and supported by other European delegates, as well as the United States and Morgenthau and White, was never undertaken.