Download - Chuy+¬n -æß+ü 2

Transcript
  • Chuyn 2NGN HNG V QUN TR CC NH CH TI CHNH

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Bng cn i k ton ngn hngTi sn nTin gi pht sc (tin gi thanh ton)Tin gi phi giao dch (tit kim, c k hn)Tin vayVn ngn hng

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Bng cn i k ton ngn hng(tip theo)Ti sn cD trCc danh mc tin mt trong qutrnh nh thuTin gi ti cc ngn hng khcChng khonCc khon cho vay Cc ti sn khc

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Bng cn i k ton hp nht cc ngn hng thng mi (t l % cc khon mc trn tng s, 6/ 2011

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Hot ng c bn ca ngn hng: tin gi bng tin mtM ti khon pht sc do lm tng ln mt khon d tr ngn hng tng ng vi khon tin gi tng thm.

    Ngn hng quc gia u tinNgn hng qc gia u tinTi snNgun vnTi snNgun vnTin mt d tr+$100Tin gi pht sc+$100Tin mt d tr+$100Tin gi pht sc+$100

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Hot ng c bn ca ngn hng: tin gi pht scKhi ngn hng nhn thm mt khon tin gi th lm cho d tr tin mt tng ln tng ng v khi khon tin gi gim xung s lm cho d d tim mt gim tng ng

    Ngn hng quc gia u tinNgn hng quc gia th haiTi sn cTi sn nTi sn cTi sn nD tr+$100Tin gi pht sc+$100D tr-$100Tin gi pht sc-$100

    Ngn hng quc gia u tinTi snNgun vnCc danh mc tin mt trong qu trnh nh thu+$100Tin gi pht sc+$100

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Hot ng c bn ca ngn hng: tim kim li nhunChuyn i ti sn: bn mt danh mc ti sn n ny sau dng s tin thu c mua mt danh mc ti sn vi nhng c im khc. Ngn hng huy ng vn ngn v di hn

    Ngn hng quc gia u tinNgn hng quc gia u tin

    Ti sn cTi sn nTi sn cTi sn nD tr bt buc+$100Tin gi pht sc+$100D tr bt buc+$100Tin gi pht sc+$100D tr tha+$90Cho vay+$90

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Cc nguyn tc chung trong qun tr ngn hngQun tr thanh khonQun tr ti snQun tr nQun tr an ton vnRi ro tn dngRi ro li sut

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr thanh khon: tha d trGi s d tr bt buc l 10%Nu mt ngn hng c d tr bt buc phong ph, th khi c mt khon tin gi rt khoi ngn hng khng cn thit phi thay i cc b phn TS khc trn bng cn i.

    Ti sn cTi sn nTi sn cTi sn nD tr$20MTin gi$100MD tr$10MTin gi$90MCho vay$80MVn ngn hng$10MCho vay$80MVn ngn hng$10MChng khon$10MVn ngn hng$10M

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr thanh khon: thiu ht d trD tr l mt yu cu bt buc phi thc hin i vi hot ng kinh doanh ngn hng, thiu ht d tr phi c loi trTng d tr l hn ch chi ph pht sinh khi dng vn tin gi rt khi ngn hng.

    Ti sn cTi sn nTi sn cTi sn nD tr$10MTin gi$100MD tr$0Tin gi$90MCho vay$90MVn ngn ng$10MCho vay$90MVn ngn hng$10MChng khon$10MChng khon$10M

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr thanh khon: vay nChi ph pht sinh l tin li phi tr cho cc khon vn vay.

    Ti sn cTi sn nTS d tr$9MTin gi$90MTS cho vay$90MCc khon vay n$9MChng khon$10MVn ngn hng$10M

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr thanh khon: Bn chng khonChi ph cho vic bn chng khon l chi ph mi gii v cc ph giao dch khc

    Ti sn cTi sn nTS d tr$9MTin gi$90MTS cho vay$90MVn ngn hng$10MChng khon$1M

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr thanh khon: Ngn hng trung ngVay n t NHTW theo hnh thc ti chit khu v phi tr li d trn li sut ti chit khu theo quy nh.

    To sn cTi sn nTS d tr$9MTin gi$90MTS cho vay$90MVay ca NHTW$9MChng khon$10MVn ngn hng$10M

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr thanh khon: Gim cho vayGim cc khon cho vay l gi phi tr cho vic mua cc khon d tr Khch hng s phn khng khi ngn hng thu hi vn trc hnCc ngn hng khc ch c th ng mua li cc khon cho vay mc gi thp.

    Ti sn cTi sn nTS d tr$9MTin gi$90MTS cho vay$81MVn ngn hng$10MChng khon$10M

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr ti sn: 3 mc tiu1. Tm kim cc khon cho vay hoc u t chng khon vi li nhun cao.2. Gim thiu ri ro3. Duy tr thanh khon (TS c tnh thanh khon)

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr ti sn: 4 cng c1. Tm kim khch hng vay vi li sut cao nhng ri ro khng tr c n thp.2. u t chng khon vi mc li nhun cao nhng ri ro thp.3. a dng ha danh mc u t gim thiu ri ro.4. Cn bng gia TS thanh khon cao vi TS li nhun cao thanh khon km.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr ti sn nHin tng gn y do tng ln cc ngn hng thng mi. M rng th trng tn dng qua m v cc cng c ti chnh hin i Tin gi thanh ton gim quan trng trong ngun vn ngn hng.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr an ton vnVn ngn nga ri ro v n ngn hngVn nh hng n li nhun c ng ngn hng Cc quy nh cn thit

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr an ton vn: ngn nga ri ro v n ngn hng

    Vn ngn hng caoVn ngn hng thpTi sn cTi sn n Ti sn cTi sn n TS d tr$10MTin gi$90MTS d tr$10MTin gi$96MTS tn dng$90MVn ngn hng$10MTS tn dng$90MVn gn hng$4M

    Vn ngn hng caoVn ngn hng thpTi sn cTi sn n Ti sn cTi sn n TS d tr$10MTin gi$90MTS d tr$10MTin gi$96MTS tn dng$85MVn ngn hng$5MTS tn dng$85MVn ngn hng-$1M

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr an ton vn: Thu nhp cho c ng

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun tr an ton vn : s an tonNhng li ch ca c ng ngn hng l bng cch u t an tonTn km cho c ng ngn hng l v vn cng cao nhng thu nhp trn vn cng thpLa chn ph thuc vo tnh hnh kinh t mc tin tng

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Khng hong n di chun ca ngn hng trong cuc khng hong ti chnh ton cuThiu ht vn ngn hng dn n tng trng tn dng chm hn Nhng tn tht ln t vic nm gia nhng chng khon c m bo bng cc hp ng tn dng th chp nh .Nhng thua l lm gim vn ngn hng Cc ngn hng khng th huy ng c nhiu vn trong nn kinh t yu km, v phi tht cht cc tiu chun cho v gim cho vay.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun l ri ro tn dngKim tra gim stThm nh tn dngChuyn mn ha trong cp tn dngGim st v tun th cc quy nh an ton tn dng

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun l ri ro tn dng (tip theo)Xy dng mi quan h di hn vi khch hngCc cam kt cho vayCn i gia gi tr ti sn th thp vi n cho vay Xy dng nh mc tn dng an ton

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Qun l ri ro li sut Nu mt ngn hng c ngun vn nhy cm vi li sut ln hn ti sn nhy cm vi li sut, th khi li sut tng s lm gim li nhun ngn hng v khi li sut gim s lm li nhun tng.

    Ngn hng quc gia u tinTi sn cTi sn nTi sn nhy cm vi li sut$20MCc khon n nhy cm vi li sut $50MCc khon cho vay li sut ngn hn v li sut th ni Chng ch tin gi li sut th niChng khon ngn hnTin gi trn th trng tin tTi sn c li sut c nh$80MN li sut c nh$50MD trTin gi pht scCc khon cho vay di hnTin gi tit kimChng khon di hnChng ch tin gi di hnVn ch s hu

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Phn tch khong chnh lch v thi hn Phn tch chnh lch c bn:(ti sn nhy cm vi li sut n nhy cn vi li sut) x li sut = li nhun ngn hngPhng php phn tch k hno lng chnh lch cho nhiu khon o hn nh, sao cho c th tnh c nh hng ca nhng thay i li sut trong thi k di. Phn tch chnh lch tiu chun haTnh n cc mc khc bit trong tnh nhy cm vi li sut ca cc ti sn v cc khon n c li sut thay i.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Phn tch khong chnh lch v thi hn (tip theo) % gi tr th trng ca chng khon x phn trm im li sut x thi hn tnh theo nm.

    Khi phn tch thi hn, ngi ta s dng thi hn bnh qun ti sn m mt nh ch ti chnh vi cc khon n ca n cho thy gi tr rng ca n phn ng li vi s thay i li sut nh th no?

    Trong :

    T: thi gian cho n khi khon thanh ton thc hinCPr: khon tin thanh ton ti thi im r (gc + li)i: li sut

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Phn tch khong chnh lch v thi hn (tip theo) Gi s di bnh qun ca cc ti sn m ngn hng nm gi l 3 nm, trong khi di bnh qun ca cc khon n m n phi tr l 2 nm. Ngn hng ny ang nm gi gi tr ti sn l $100 triu v cc khon n bng $90 triu, vn s hu l $10 triu. Khi li sut tng 5 im %, th gi tr th trng cc ti sn m ngn hng nm gi gim 15% (5% x 3 nm), hay $15 triu trong s $100 triu. Tuy nhin, gi tr th trng ca cc khon n cng gim 10% (5% x 2 nm), hay $9 triu trong tng n l $90 triu. Kt qu cui cng l gi tr rng gim $6 triu, hay 6% gi tr ti sn ban u. Ngc li, khi li sut gim 5 im % gi tr rng ca ngn hng s tng mt lng 6% gi tr ti sn.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Cc hot ng ngoi bng cn i k tonBn cc khon cho vay (trn th trng tn dng th cp) thu nhp kim c bng cch bn cc khon cho vay vi gi cao hn khon cho vay ban u. VD: khon cho vay ban u vi gi tr 98 triu sau bn li vi gi 98,1 triu.To cc khon thu nhp t ph, nh:Mua bn ngoi t cho khch hngThanh ton chng khon cn c.Bo lnh cc chng ch n nh chp nhn hi phiu ngn hng, cung cp tn dng d phng.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Cc hot ng ngoi bng cn i k tonHot ng thng mi v k thut qun l ri ro Hot ng chng khon phi sinh nhm gim thiu ri ro trong kinh doanh, nhng qua thc hin u t kinh doanh sinh li nh: hp ng ti chnh k hn, hp ng quyn chn, cc cng c n, hon i li sut, giao dch trn th trng ngoi hi.Vn ngi y thc trong hot ng thng mi v k thut qun l ri ro.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Cc hot ng ngoi bng cn i k tonKim sot ni b lm gim vn ngi y thc Tch bit hon ton gia ngi chu trch nhim mua bn v ngi chu trch nhim ghi chp cc giao dch.Gii hn cho tng s giao dch ca nh bun v mc chp nhn ri ro ca cc nh ch ti chnh Kim tra mc cng thng .

  • CNG NGHIP NGN HNG: CU TRC V CNH TRANH

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Lch s pht trin ca h thng ngn hngNgn hng Bc M trong iu lut 1782Tranh ci v c quyn ca cc ngn hng. o lut ngn hng quc gia 1863 to ra h thng ngn hngVn phng kim sot tin tH thng ngn hng 2 cpH thng d tr lin bang c thnh lp nm 1913.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    S : biu din dng lch s pht trin ca ngn hng thng mi Hoa K

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Trch nhim gim st chnh ca cc c quan iu tit ngn hngQuyn lc Cc d tr lin bang v Ngn hng nh nc : ngn hng nh nc l thnh vin cc d tr lin bang.Fed cng iu chnh cc cng ty nm gi ngn hng.FDIC: cc ngn hng nh nc tham gia bo him v n khng phi l thnh vin ca Fed. State banking authorities: l nhng ngn hng nh nc khng c tham gia bo him ca FDIC

    2013 Pearson Education, Inc. All rights reserved. 11-*

    i mi ti chnh v s pht trin ca cc gam mu xm h thng ngn hngi mi ti chnh c thc y bi mong mun tm kim li nhunS thay i trong mi trng ti chnh s kch thch mt s tm kim ca cc nh ch ti chnh cho nhng i mi i mi c kh nng sinh li K xo ti chnh

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Phn ng vi nhng thay i trong iu kin cu: li sut bin ng iu chnh li sut th chpLi sut linh hot gi cho li nhun cao khi li sut tng. Li sut ban u thp to ra s hp dn cho ngi mua nh Phi sinh ti chnhKh nng t bo hin ri ro li sutCc khon thanh ton c lin kt vi cc chng khon pht hnh trc y.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Phn ng vi nhng thay i trong iu kin cung: cng ngh thng tinTh tn dng v th ghi n ngn hngCi thin cng ngh tin hc lm gim chi ph giao dchNgn hng in tATM, home banking, ABM v ngn hng o Th trng thng phiu

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Phn ng vi nhng thay i trong cung cp cc iu kin: cng ngh thng tin(tip theo)Chng khon haChuyn i nhng ti sn ti chnh c thanh khon thp sang chng khon thanh khon cao trn th trng vn. Chng khon ha ng vai tro c bit ni bt trong s pht trin th trng th chp di chun trong gia nhng nm 2000.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Trnh cc quy nh hin ti: khai thc k ho lut v d tr bt buc nh l mt loi thu trn tin gi.Gii hn li tr cho cc khon tin gi dn n phi trung gian haCc qu h tng th trng tin tCc ti khon chuyn gi

    2013 Pearson Education, Inc. All rights reserved. 11-*

    i mi ti chnh v s suy gim hot ng ngn hng truyn thngNh mt ngun qu cho vay, th phn gim C phiu ca ngn hng thng mi trong tng ti sn ti chnh ca cc trung gian ti chnh gim.Khng gim li nhun tng thTng thu nhp t cc hot ng ngoi bng

    2013 Pearson Education, Inc. All rights reserved. 11-*

    th c phn ngn hng ca tng tin vay phi ti chnh, 19602011 Source: Federal Reserve Flow of Funds; www.federalreserve.gov/releases/z1/Current/z1.pdf. Flow of Funds Accounts; Federal Reserve Bulletin.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    i mi ti chnh v s suy gim hot ng ngn hng truyn thngGim li th chi ph trong thu ht vn(cc khon n)Lm pht tng dn n tng li sut v gim i vai tr trung gian tn dng ngn hng Ngun ti chnh c chi ph thp, tin gi pht sc, gim i tm quan trngGim li th thu nhp ca vic s dng vn (ti sn)Cng ngh thng tin lm gim nhu cu cho cc ngn hng cung cp cc khon ti tr tn dng ngn hn hoc cc khon cho vay. Cng ngh thng tin lm gim chi ph giao dch cho cc nh ch ti chnh khc, tng s cnh tranh.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Phn ng ca cc ngn hngM rng cho vay sang lnh vc mi v mo himCho vay kinh doanh bt ng snThn tnh cng ty v thu mua bng vn vayTheo ui cc hot ng kinh doanh ngoi bngThu nhp ngoi liLo ngi v ri ro

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Cu trc ca ngnh cng nghip ngn hng thng mi M Hn ch m rng chi nhnho lut McFadden v cc quy nh quc gia v chi nhnh ngn hng.Phn ng v nhng hn ch lp chi nhnhCng ty nm gi ngn hngMy rt tin t ng.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Bng 1 Quy m cc ngn hng tham gia bo him, 3/2011

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Bng 2: 10 ngn hng ln nht M, 30/12/2010

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Hp nht ngn hng v ngn hng ton qucS lng cc ngn hng gim trong 25 nm quaNhng tht bi ngn hng v s hp nht.Bi b iu tit: o lut ngn lin bang Riegle-Neal v o lut hiu qu m rng chi nhnh hiu 1994.Nhng hiu qu ca quy m v phm vi t cng ngh thng tin.Kt qu khng ch l s lng ngn hng gim i nhng l mt s thay i ln nhiu v ti sn cho cc ngn hng

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Li ch v chi ph ca ngn hng hp nhtCc li ch Tng sc cnh tranh, to p lc cho cc ngn hng km hiu qu trong kinh doanhLm tng hiu qu t hiu qu v quy m v phm vi Xc sut thp bi ngn hng thp hn t a dng ha danh mc u tChi ph Loi b cc ngn hng cng ng c th dn n t cho vay cc doanh nghip nh Cc ngn hng m rng sang lnh vc mi c th chp nhn tht bi v ri ro tng ln

    2013 Pearson Education, Inc. All rights reserved. 11-*

    S : s ngn hng thng mi c bo him M 19342010 (qu 3)Source: www2.fdic.gov/qbp/qbpSelect.asp?menuitem=STAT.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Tch bit cng nghip dch v ngn hng v cc ngnh cng nghip dch v ti chnh khcS xi mn ca o lut Glass-Steagall Ngn cm cc ngn hng thng mi bo lnh chng khon cng ty v tham gia cc hot ng mi gii Khon 20 th thut trnh thu was allowed by the Federal Reserve enabling affiliates of approved commercial banks to underwrite securities as long as the revenue did not exceed a specified amountU.S. Supreme Court validated the Feds action in 1988

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Separation of the Banking and Other Financial Service Industries (contd)Gramm-Leach-Bliley Financial Services Modernization Act of 1999Abolishes Glass-SteagallStates regulate insurance activitiesSEC keeps oversight of securities activitiesOffice of the Comptroller of the Currency regulates bank subsidiaries engaged in securities underwritingFederal Reserve oversees bank holding companies

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Separation of Banking and Other Financial Services Industries Throughout the WorldUniversal bankingNo separation between banking and securities industriesBritish-style universal bankingMay engage in security underwritingSeparate legal subsidiaries are commonBank equity holdings of commercial firms are less commonFew combinations of banking and insurance firms

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Separation of Banking and Other Financial Services Industries Throughout the World (contd)Some legal separationAllowed to hold substantial equity stakes in commercial firms but holding companies are illegal

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Thrift Industry: Regulation and StructureSavings and Loan AssociationsChartered by the federal government or by statesMost are members of Federal Home Loan Bank System (FHLBS)Deposit insurance provided by Savings Association Insurance Fund (SAIF), part of FDICRegulated by the Office of Thrift SupervisionMutual Savings BanksApproximately half are chartered by statesRegulated by state in which they are locatedDeposit insurance provided by FDIC or state insurance

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Thrift Industry: Regulation and Structure (contd)Credit UnionsTax-exempt Chartered by federal government or by statesRegulated by the National Credit Union Administration (NCUA)Deposit insurance provided by National Credit Union Share Insurance Fund (NCUSIF)

    2013 Pearson Education, Inc. All rights reserved. 11-*

    International BankingRapid growthGrowth in international trade and multinational corporationsGlobal investment banking is very profitableAbility to tap into the Eurodollar market

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Eurodollar MarketDollar-denominated deposits held in banks outside of the U.S.Most widely used currency in international tradeOffshore deposits not subject to regulationsImportant source of funds for U.S. banks

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Structure of U.S. Banking OverseasShell operationEdge Act corporationInternational banking facilities (IBFs)Not subject to regulation and taxesMay not make loans to domestic residents

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Foreign Banks in the U.S.Agency office of the foreign bankCan lend and transfer fund in the U.S. Cannot accept deposits from domestic residentsNot subject to regulationsSubsidiary U.S. bankSubject to U.S. regulationsOwned by a foreign bank

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Foreign Banks in the U.S. (contd)Chi nhnh ngn hng nc ngoiMay open branches only in state designated as home state or in state that allow entry of out-of-state banksLimited-service may be allowed in any other stateSubject to the International Banking Act of 1978Basel Accord (1988)Example of international coordination of bank regulationSets minimum capital requirements for banks

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Table 3 Ten Largest Banks in the World, 2011

  • NGN HNG TRUNG NG:

    VIN CNH TON CU HA

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Origins of the Federal Reserve SystemResistance to establishment of a central bankFear of centralized powerDistrust of moneyed interestsNo lender of last resortNationwide bank panics on a regular basisPanic of 1907 so severe that the public was convinced a central bank was neededFederal Reserve Act of 1913Elaborate system of checks and balancesDecentralized

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Structure of the Federal Reserve SystemThe writers of the Federal Reserve Act wanted to diffuse power along regional lines, between the private sector and the government, and among bankers, business people, and the public This initial diffusion of power has resulted in the evolution of the Federal Reserve System to include the following entities:

    The Federal Reserve banks, the Board of Governors of the Federal Reserve System, the Federal Open Market Committee (FOMC), the Federal Advisory Council, and around 2,900 member commercial banks.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Figure 1 Federal Reserve SystemSource: Federal Reserve Bulletin.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Federal Reserve BanksQuasi-public institution owned by private commercial banks in the district that are members of the Fed systemMember banks elect six directors for each district; three more are appointed by the Board of GovernorsThree A directors are professional bankersThree B directors are prominent leaders from industry, labor, agriculture, or consumer sectorThree C directors appointed by the Board of Governors are not allowed to be officers, employees, or stockholders of banks

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Federal Reserve Banks (contd)Member banks elect six directors for each district; three more are appointed by the Board of Governors (contd)Designed to reflect all constituencies of the publicNine directors appoint the president of the bank subject to approval by Board of Governors

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Functions of the Federal Reserve BanksClear checksIssue new currencyWithdraw damaged currency from circulationAdminister and make discount loans to banks in their districtsEvaluate proposed mergers and applications for banks to expand their activities

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Functions of the Federal Reserve Banks (contd)Act as liaisons between the business community and the Federal Reserve SystemExamine bank holding companies and state-chartered member banksCollect data on local business conditionsUse staffs of professional economists to research topics related to the conduct of monetary policy

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Federal Reserve Banks and Monetary PolicyDirectors establish the discount rateDecide which banks can obtain discount loansDirectors select one commercial banker from each district to serve on the Federal Advisory Council which consults with the Board of Governors and provides information to help conduct monetary policyFive of the 12 bank presidents have a vote in the Federal Open Market Committee (FOMC)

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Member BanksAll national banks are required to be members of the Federal Reserve SystemCommercial banks chartered by states are not required but may choose to be membersDepository Institutions Deregulation and Monetary Control Act of 1980 subjected all banks to the same reserve requirements as member banks and gave all banks access to Federal Reserve facilities

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Board of Governors of the Federal Reserve SystemSeven members headquartered in Washington, D.C.Appointed by the president and confirmed by the Senate14-year non-renewable termRequired to come from different districtsChairman is chosen from the governors and serves four-year term

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Duties of the Board of GovernorsVotes on conduct of open market operationsSets reserve requirementsControls the discount rate through review and determination processSets margin requirementsSets salaries of president and officers of each Federal Reserve Bank and reviews each banks budget

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Duties of the Board of Governors (contd)Approves bank mergers and applications for new activitiesSpecifies the permissible activities of bank holding companies Supervises the activities of foreign banks operating in the U.S.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Chairman of the Board of GovernorsAdvises the president on economic policyTestifies in CongressSpeaks for the Federal Reserve System to the mediaMay represent the U.S. in negotiations with foreign governments on economic matters

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Federal Open Market Committee (FOMC)Meets eight times a yearConsists of seven members of the Board of Governors, the president of the Federal Reserve Bank of New York and the presidents of four other Federal Reserve banksChairman of the Board of Governors is also chair of FOMCIssues directives to the trading desk at the Federal Reserve Bank of New York

    2013 Pearson Education, Inc. All rights reserved. 11-*

    FOMC MeetingReport by the manager of system open market operations on foreign currency and domestic open market operations and other related issuesPresentation of Boards staff national economic forecastOutline of different scenarios for monetary policy actions Presentation on relevant Congressional actionsPublic announcement about the outcome of the meeting

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Why the Chairman of the Board of Governors Really Runs the ShowSpokesperson for the Fed and negotiates with Congress and the PresidentSets the agenda for meetingsSpeaks and votes first about monetary policySupervises professional economists and advisers

    2013 Pearson Education, Inc. All rights reserved. 11-*

    How Independent is the Fed?Instrument and goal independence. Independent revenueFeds structure is written by Congress, and is subject to change at any time. Presidential influenceInfluence on CongressAppoints membersAppoints chairman although terms are not concurrent

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Should the Fed Be Independent?The Case for IndependenceThe strongest argument for an independent central bank rests on the view that subjecting It to more political pressures would impart an inflationary bias to monetary policy The Case Against Independence-Proponents of a Fed under the control of the president or Congress argue that it is undemocratic to have monetary policy (which affects almost everyone in the economy) controlled by an elite group that is responsible to no one

    2013 Pearson Education, Inc. All rights reserved. 11-*

    The Case for IndependencePolitical pressure would impart an inflationary bias to monetary policyPolitical business cycleCould be used to facilitate Treasury financing of large budget deficits: accommodationToo important to leave to politiciansthe principal-agent problem is worse for politicians

    2013 Pearson Education, Inc. All rights reserved. 11-*

    The Case Against IndependenceUndemocraticUnaccountableDifficult to coordinate fiscal and monetary policyHas not used its independence successfully

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Explaining Central Bank BehaviorOne view of government bureaucratic behavior is that bureaucracies serve the public interest (this is the public interest view). Yet some economists have developed a theory of bureaucratic behavior that suggests other factors that influence how bureaucracies operate

    The theory of bureaucratic behavior may be a useful guide to predicting what motivates the Fed and other central banks

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Explaining Central Bank Behavior (contd)Theory of bureaucratic behavior: objective is to maximize its own welfare which is related to power and prestigeFight vigorously to preserve autonomyAvoid conflict with more powerful groupsDoes not rule out altruism

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Structure and Independence of the European Central BankPatterned after the Federal ReserveCentral banks from each country play similar role as Fed banksExecutive BoardPresident, vice-president and four other members Eight year, nonrenewable termsGoverning Council

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Differences Between the European System of Central Banks and the Federal Reserve System National Central Banks control their own budgets and the budget of the ECBMonetary operations are not centralizedDoes not supervise and regulate financial institutions

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Governing CouncilMonthly meetings at ECB in Frankfurt, GermanyTwelve National Central Bank heads and six Executive Board membersOperates by consensusECB announces the target rate and takes questions from the mediaTo stay at a manageable size as new countries join, the Governing Council will be on a system of rotation

    2013 Pearson Education, Inc. All rights reserved. 11-*

    How Independent Is the ECB?Most independent in the worldMembers of the Executive Board have long termsDetermines own budgetLess goal independentPrice stabilityCharter cannot by changed by legislation; only by revision of the Maastricht Treaty

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Structure and Independence of Other Foreign Central BanksBank of CanadaEssentially controls monetary policyBank of EnglandHas some instrument independence.Bank of JapanRecently (1998) gained more independence The trend toward greater independence

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Central Banks in Transition EconomiesBy 1989 and 1991 socialism collapsed in a number of socialist countries in east and central Europe and the former USSR.Market economy institutions were to be created.State owned,dual roled banks were changed to central banks and commercial banks.Gradual central bank independency has been granted,so that successful solutions to inflation and bank supervision can be undertaken.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Central Banks in Developing Countries and Emerging Economies Developing nations are those economies that make up 80% of the global population but produce a little less than 20 % of the worlds GDP.Many of these are newcomers to the concept of central banking.The degree of independence,low level of capitalization,inability to generate sources of revenue and inability to conduct monetary policy are some of the typical problems.

    2013 Pearson Education, Inc. All rights reserved. 11-*

    Central Banks in Developing Countries and Emerging Economies (contd)Among the most independent central banks are the Reserve Bank ofAfrica and Central Bank of Egypt.Multinational central banks(The Eastern Caribbean Central Bank) and currency unions(Panama,El Salvador,Ecuador) are different ways to substitute the known central banking functions as ensuring the stability of the currency,supervising the banking system and conducting monetary policy.

    ***************************************************************************************