THE ROLE OF CENTRAL BANKS: a comparative study of China, Korea, France and U.s International Monetary Fund Emergency Meeting SHANGHAL2012 Group members:陈涛张璆 Quentin Amandine nikita 2011-01-05 GROUP 2- TOPIC 8
THE ROLE OF CENTRAL BANKS: THE ROLE OF CENTRAL BANKS: a comparative study of China Korea France and U S China, Korea, France and U.S. International Monetary Fund Emergency Meeting Emergency Meeting SHANGHAI,2012 Group members:陈涛 张璆 Quentin Amandine Nikita 2011-01-05 GROUP 2 - TOPIC 8 Group members:陈涛 张璆 Quentin Amandine Nikita
Central Banks Definition &Functions What is a central bank? A Central Bank or reserve bank is the organization within a specific country or coalition of countries that regulates all of the currency supplies and related policies for that particular area. A Central Bank will perform various actions, but its most important job is to make certain that the national currency and remain stable. Depending on the country, Central Banks may be government owned and controlled or may be run under regulations that are specifically created to prevent extensive government interference
Central Banks Central Banks What is a central bank? Definition&Functions What is a central bank? A C tl en ra B k an or reserve b k an is the organi ti za on within a specific country or coalition of countries that regulates all of the currency supplies and related policies for that particular area. A Central Bank will perform various actions, but its most important job is to make certain certain that the national national currency currency and remain stable. Depending on the country, Central Banks may be government owned and controlled or may be run under regulations regulations that are specifically specifically created to prevent extensive government interference
Central Banks In a fractional reserve banking system, banks keep a fraction of deposits as reserves and use the rest to make loans Central banks establish reserve requirements regulations on the minimum amount of reserves that banks must hold against deposits Banks may hold more than this minimum amount if they choose The reserve ratio. r fraction of deposits that banks hold as reserves total reserves as a percentage of total deposits
Central Banks Central Banks • In a fract o a ese e ba g syste ional reserve banking system, banks keep a fraction of deposits as reserves and use the rest to make loans. • Central banks establish reserve requirements, regulations on the minimum amount of reserves that banks must hold against deposits. • Banks may hold more than this minimum amount if they choose. • The reserve ratio, R = fraction of deposits that banks hold as reserves = total reserves as a pg p ercentage of total deposits
International Monetary Fund Emergency meetin People's Bank of China The Federal Reserve Governor Governor Zhou xiaochuan Ben ernanke BANQUE DE FRANCE Banque de France Bank of Korea Governer ChoonAsun飞im governor Christian noyer SHANGHAL 2012
SHANGHAI 2012
Central Banks Theories linked to central bank Without some regulatory agency for limiting currency, setting interest rates and Crisis Regulationregulating banking practices, a country Banks disrupt the would quickly find financial disaster openness of financial markets and cause more harm than good Source: Decker Presentations
Central Banks Central Banks Theories linked to central bank Without some regulatory agency for limiting for limiting Ci i currency, setting interest rates, and Crisis Regulation regulating banking regulating banking practices, a country would quickly find Regulation Banks disrupt the disrupt the openness of financial markets and cause would quickly quickly find financial disaster. markets markets and cause more harm than good. Source: Decker Presentations
A Comparative Study of China, Korea, france and U.s Objective Link with countrV's government l Organizational difference
A Comparative Study A Comparative Comparative Study of China, Korea, France and U.S. Objective Link with country’s government Organizational difference
ED STA U.S.- Objectives To address the problem of banking panics RESER To serve as the central bank for the united states To strike a balance between private interests of banks and the centralized responsibility of government To supervise and regulate ban king institutions To protect the credit rights of consumers To manage the nations money supply through monetary policy to achieve the sometimes-conflicting goals of maximum employment stable prices, including prevention of either inflation or deflation moderate long-term interest rates
U S. . - Objectives Objectives To address the problem of banking panics To serve as the central bank for the United States To serve as the central bank for the United States To strike a balance between private interests of banks and the centralized responsibility of government and the centralized responsibility of government • To supervise and regulate banking institutions • To protect the credit rights of consumers To protect the credit rights of consumers To manage the nation's money supply through monetary policy to achieve the sometimes monetary policy to achieve the sometimes-conflicting conflicting goals of • maximum employment maximum employment • stable prices, including prevention of either inflation or deflation or deflation • moderate long-term interest rates
ED STA U.S.- Objectives RESER To maintain the stability of the financial system and contain systemic risk in financial markets To provide financial services to depository institutions, the U.s. government, and foreign official institutions, including playing a major role in operating the nations payments system To facilitate the exchange of payments among regions To respond to local liquidity needs To strengthen U.s. standing in the world economy
U S. . - Objectives Objectives To maintain the stability of the financial system and contain systemic risk in financial markets To provide financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system • T f ilit t th h f t To facilitate the exchange of payments among regions • To respond to local liquidity needs To respond to local liquidity needs To strengthen U.S. standing in the world economy
France-Objectives Without prejudice to the objective of price stability, the ESCB shall support the general economic policies in the Community with a view to contributing to the achievement of the objectives of the community as laid down in Article 2 Contribution to prudential supervision and financial stability
France - Objectives Objectives Without prejudice to the objective of price stability the Without prejudice to the objective of price stability, the ESCB shall support the general economic policies in the Community with a view to contributing to the the Community with a view to contributing to the achievement of the objectives of the Community as laid down in Article 2 down in Article 2
Korea- Objectives The purpose of this Act shall be to establish the Bank of Korea and to contribute to the sound development of the national economy by pursuing price stability through the formulation and implementation of efficient monetary and credit policies
Korea - Objectives Objectives The purpose of this Act shall be to establish the Bank of Korea and to contribute to the sound development of the national economy by pursuing price stability through the formulation and implementation of efficient monetary and credit policies
