Central banking system and its functions Manto Alexander Budget and Treasury Academy in Moscow Academy in Moscow2009. - презентация

1 Central banking system and its functions Manto Alexander Budget and Treasury Academy in Moscow Academy in Moscow2009

2 Contents Definition Definition Main functions Main functions Currency issuance Currency issuance Naming of central banks Naming of central banks Main policy instruments Main policy instruments Conclusion Conclusion

3 Central bank Monetary authority of a country granted the Monetary authority of a country granted the exclusive privilege to lend a government its exclusive privilege to lend a government its currency. currency.

4 Main functions controlling money supply controlling money supply money issuance money issuance setting the official interest rate setting the official interest rate implementing monetary policy implementing monetary policy

5 Currency issuance Exclusive privilege of a central bank Exclusive privilege of a central bank

6 Examples of naming Bank of countryNational bank ofReserve bank of

7 Main policy instruments Open market operations Open market operations Reserve require ratio Reserve require ratio Discount rate policy Discount rate policy

8 Open market operations Do not require the immediate printing of new currency Do not require the immediate printing of new currency Most frequently used tool of central bank Most frequently used tool of central bank

9 Required reserve ratio

10 Discount rate policy Affect the balance between demand and supply Affect the balance between demand and supply Taken into account before starting business Taken into account before starting business

11 Conclusion Central bank system becomes the most important mean of economy policy in crisis period Central bank system becomes the most important mean of economy policy in crisis period

12 Thank you for your attention.