Central Bank Balances and Reserve Requirements
Central Bank Balances and Reserve Requirements

Author: Mr.Simon Gray

Publisher: International Monetary Fund

Published: 2011-02-01

Total Pages: 57

ISBN-13: 1455217905

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Most central banks oblige depository institutions to hold minimum reserves against their liabilities, predominantly in the form of balances at the central bank. The role of these reserve requirements has evolved significantly over time. The overlay of changing purposes and practices has the result that it is not always fully clear what the current purpose of reserve requirements is, and this necessarily complicates thinking about how a reserve regime should be structured. This paper describes three main purposes for reserve requirements - prudential, monetary control and liquidity management - and suggests best practice for the structure of a reserves regime. Finally, the paper illustrates current practices using a 2010 IMF survey of 121 central banks.

The Federal Reserve System Purposes and Functions
The Federal Reserve System Purposes and Functions

Author: Board of Governors of the Federal Reserve System

Publisher:

Published: 2002

Total Pages: 0

ISBN-13: 9780894991967

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Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

Separation of Commercial and Investment Banking
Separation of Commercial and Investment Banking

Author: George J. Benston

Publisher: Springer

Published: 1990-06-18

Total Pages: 274

ISBN-13: 1349112801

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The latest in a series of studies in banking and international finance. This book deals with all aspects of the Glass-Steagall Act, and the relationship between the commercial banks and the investment banks.

Where Does Money Come From?
Where Does Money Come From?

Author: Josh Ryan-Collins

Publisher:

Published: 2014-01-31

Total Pages: 186

ISBN-13: 9781908506542

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Based on detailed research and consultation with experts, including the Bank of England, this book reviews theoretical and historical debates on the nature of money and banking and explains the role of the central bank, the Government and the European Union. Following a sell out first edition and reprint, this second edition includes new sections on Libor and quantitative easing in the UK and the sovereign debt crisis in Europe.

Changing Nature of Financial Intermediation and the Financial Crisis of 2007-09
Changing Nature of Financial Intermediation and the Financial Crisis of 2007-09

Author: Tobias Adrian

Publisher: DIANE Publishing

Published: 2011

Total Pages: 35

ISBN-13: 1437930905

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This is a print on demand edition of a hard to find publication. The financial crisis of 2007-09 highlighted the changing role of financial institutions and the growing importance of the ¿shadow banking system,¿ which grew out of the securitization of assets and the integration of banking with capital market developments. In a market-based financial system, banking and capital market developments are inseparable, and funding conditions are tied closely to fluctuations in the leverage of market-based financial intermediaries. This report describes the changing nature of financial intermediation in the market-based financial system, charts the course of the recent financial crisis, and outlines the policy responses that have been implemented by the Fed. Reserve and other central banks. Charts and tables.

Federal Reserve's Commercial Paper Funding Facility
Federal Reserve's Commercial Paper Funding Facility

Author: Tobias Adrian

Publisher: DIANE Publishing

Published: 2010-06

Total Pages: 38

ISBN-13: 1437929303

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The Federal Reserve (FR) created the Commercial Paper Funding Facility (CPFF) in the midst of severe disruptions in money markets following the bankruptcy of Lehman Bros. on Sept. 15, 2008. The CPFF finances the purchase of highly rated unsecured and asset-backed commercial paper from eligible issuers via primary dealers. The facility is a liquidity backstop to U.S. issuers of commercial paper, and its creation was part of a range of policy actions undertaken by the FR to provide liquidity to the financial system. This report documents aspects of the financial crisis relevant to the creation of the CPFF, reviews the operation of the CPFF, discusses use of the facility, and draws conclusions for lender-of-last-resort facilities. Charts and tables.

The Chicago Plan Revisited
The Chicago Plan Revisited

Author: Mr.Jaromir Benes

Publisher: International Monetary Fund

Published: 2012-08-01

Total Pages: 71

ISBN-13: 1475505523

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At the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by requiring 100% reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this plan: (1) Much better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation. We study these claims by embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find support for all four of Fisher's claims. Furthermore, output gains approach 10 percent, and steady state inflation can drop to zero without posing problems for the conduct of monetary policy.

Do Central Banks Need Capital?
Do Central Banks Need Capital?

Author: Mr.Peter Stella

Publisher: International Monetary Fund

Published: 1997-07-01

Total Pages: 40

ISBN-13: 1451850506

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Central banks may operate perfectly well without capital as conventionally defined. A large negative net worth, however, is likely to compromise central bank independence and interfere with its ability to attain policy objectives. If society values an independent central bank capable of effectively implementing monetary policy, recapitalization may become essential. Proper accounting practice in determining central bank profit or loss and rules governing the transfer of the central bank’s operating result to the treasury are also important. A variety of country-specific central bank practices are reviewed to support the argument.

Monetary and Exchange System Reforms in China
Monetary and Exchange System Reforms in China

Author: Mr.Bernard Laurens

Publisher: International Monetary Fund

Published: 1996-09-26

Total Pages: 108

ISBN-13: 9781557755629

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In 1978, China embarked on a gradual but far-reaching reform of its economic system. This paper focuses on the achievements so far in reforming the financial sector, the legal framework for financial transactions, the payments system, and the monetary policy and foreign exchange system. It also analyzes the tasks ahead to achieve the goals set in these areas for the year 2000.