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