The Economics of Money and Banking Chapter 7 Central Banks >>Functions of Central Banks 2 B:Banker's Bank Central Banks To amass the reserves through the reserve requirements Functions and Business of To be the lender of the last resort To organize the national clearance and collection 6 GUO YING SEM TONGJI UNIVERSITY
The Economics of Money and Banking 6 GUO YING SEM TONGJI UNIVERSITY 2 To amass the reserves through the reserve requirements To be the lender of the last resort To organize the national clearance and collection B: Banker’s Bank Chapter 7 Central Banks Central Banks Functions and Business of Functions of Central Banks
The Economics of Money and Banking Chapter 7 Central Banks >>Functions of Central Banks 2 C:Government's bank Central Banks Functions and ▣To be the fiscal agent To provide the national government with credit support To safekeep and manage national foreign exchange and gold reserve Business of To formulate the financial regulations and supervise their implementation To represent the national government in the international financial activities 7 GUO YING SEM TONGJI UNIVERSITY
The Economics of Money and Banking 7 GUO YING SEM TONGJI UNIVERSITY 2 To be the fiscal agent To provide the national government with credit support To safekeep and manage national foreign exchange and gold reserve To formulate the financial regulations and supervise their implementation To represent the national government in the international financial activities C: Government’s bank Chapter 7 Central Banks Central Banks Functions and Business of Functions of Central Banks
The Economics of Money and Banking Chapter 7 Central Banks >>>Types of Central Banks 2 A:Single central bank system This system refers to the system that consists of a central bank itself Central Banks Functions and Business of founded by the national government to perform central bank's functions,which leads the whole banking sector. 8 GUO YING SEM TONGJI UNIVERSITY
The Economics of Money and Banking 8 GUO YING SEM TONGJI UNIVERSITY 2 Types of Central Banks A: Single central bank system Chapter 7 Central Banks Central Banks Functions and Business of This system refers to the system that consists of a central bank itself founded by the national government to perform central bank’s functions, which leads the whole banking sector
The Economics of Money and Banking Chapter 7 Central Banks >>>Types of Central Banks 2 B:Compound Central Bank System This system refers to the system that there is no bank specializing in Central Banks Functions and Business of performing the functions bank,but a large bank which performs the functions of both the central bank and an ordinary commercial bank. Such mode once existed in central planned economies,such as the former Soviet Union and other Eastern European countries. 9 GUO YING SEM TONGJI UNIVERSITY
The Economics of Money and Banking 9 GUO YING SEM TONGJI UNIVERSITY 2 B: Compound Central Bank System Chapter 7 Central Banks Central Banks Functions and Business of Types of Central Banks This system refers to the system that there is no bank specializing in performing the functions bank, but a large bank which performs the functions of both the central bank and an ordinary commercial bank. Such mode once existed in central planned economies, such as the former Soviet Union and other Eastern European countries