The Central Bank Of Jamaica

Since the Central Bank has the exclusive right to issue money in the economy, it can have extensive influence on the determination of interest rate in financial markets and in the economy as a whole, by adjusting the interest rate on short-term loans to financial institutions. Central Bank interest rates on these loans therefore have the most immediate impact on other short-term interest rates in the money market. By influencing interest rates, monetary policy then has an effect on the savings and expenditure decisions of individuals and corporate.

This role is achieved through the implantation of the monetary policies. According to Arnold (2008), Fed has several tools at it disposal that it uses in the monetary polices. These are; the open market operations which involve buying and selling U.S government securities in the financial markets. Further the bank is charged with the responsibility of determining the required reserve ratio. This ratio is given to the commercial banks dictating the minimum amounts that they should hold in to their accounts as deposits and for lending. Finally the Fed sets the discount rates putting in to consideration the overall market rates s well as desired effect on borrowing that the Fed seeks to achieve. In addition to these three major roles, as a bank, the Federal Reserve Bank can play the roles played by the commercial banks as the rules are not entirely prohibitive as far as this duty is concerned.

Supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system to protect the credit rights of consumers.

The CB uses open market operations to buy and sell securities as a means of implementing their monetary policies. They also used the open market operations as a way to control the liquidity of available money by influencing the short term interest and the supply of base money; therefore as a result controlling the supply of money. They also set the target rate for the feds and setting the discount rate at which for member banks to lend money to each other. The Feds also evaluate the bank mergers and also implements foreign exchange policy on behalf of US government and the

European Central Bank is like the US’s Federal Reserve System. Federal Reserve is the central banking system of the United States. It was formed on December 23, 1913, with the presentation of the Federal Reserve Act in reaction to a series of financial that displayed the need for central control of the financial structure.

The Federal Reserve Bank, known to most as the Fed, is the central bank for the United States and has a number of tools at his disposal in an effort to help implement monetary policy in an efficient manner. Open market operations is the outlet that allows for the both the purchase and the sale of the United States securities such as treasury bills and treasury bonds. Open market operations is governed by the Federal open market Committee, (FOMC). This is the body responsible for formulating policies that look to promote economic growth, price stability, and full employment (Saunders & Cornett, 2015).

The Federal Reserve System: Purposes & Functions (2015), the Fed has the responsibility for supervising and regulating the following segments of the banking industry to ensure safe and sound banking practices and compliance with banking laws:

14-2. Which of the following is responsible for buying and selling of government securities to influence reserves in the banking system?

Today in the money and banking world, the two largest central banks are the Federal Reserve (Fed) and the European Central Bank (ECB). There are many things that make these two entities similar and many things that make them different. Both are effective in their own ways, but which one is more effective. Is one superior than the other? Which central banking entity is more accountable? Looking at the structure of these entities will only help us answer the questions. When it comes down to it, which central banking system would you prefer?

The Federal Reserve mostly uses the open market operations to conduct its monetary policy. The reason is that, prior to the 2007-2008 financial crisis, the Fed thought that the other two tools are no longer an effective tool for long-term use, because they may cause market interest rate to rise when employed, thereby dampening the customer and business spending, slowing economic activities and decreasing inflationary pressure. For example, if the Fed uses the discount rate tool, it will be difficult for them to forecast changes in bank discount window when there is a shift and it will pose an upward pressure on the federal funds rates, according to the basic principle of supply and demand. Also, the changes in the reserve requirement can back fire into an uncertainty (wondering whether the bank will convert excess reserves into new loan or what portion of the new loan will be returned to depository institution in form of transaction deposit.) In short, using the open market operations helps Federal Reserve Bank to influence the supply of bank reserves by trading government securities on open market with the purpose of adjusting the technical, interim forces from shifting the efficient federal funds rate too far from target rate, thus generating additional

Booms, busts, recessions, and growth; all of the preceding terms are characteristics of a typical market economy. There are times when an economy can flourish spectacularly and there are times when it can fail miserably. Consequently, it is the responsibility of a nation’s central bank to manage these fluctuations through conducting effective monetary policy. The following paper will assume the perspective of the Reserve Bank of Australia (RBA) and critically analyze the past, present, and future of the Australian economy while considering specific sectors.

How does the central bank manage the nation’s monetary system? What is the monetary system? Monetary system is the nation’s money supply. The Federal Reserve is the United States’ central bank. Its roles consist of controlling the money supply. It also “clears interbank payments, regulates the banking system, assists banks in difficult financial positions. The Fed also manages exchange rates and foreign exchange reserves.” (Case, Fair, & Oster, 2011)

The Royal Bank of Canada (RBC, RBC Royal Bank, or RBC Financial Group) is the largest banking institution in Canada. RBC serves more than 18 million clients and has over 80,000 employees distributed all over the world (RBC 2008). The company corporate headquarters are located in Montreal, Quebec, and its operational head office is in Toronto, Ontario. RBC is listed as the largest Canadian company by revenue and market capitalization by The Globe and Mail and was ranked at 50 in the 2013 Forbes Global 2000 listing. The company has operations in Canada, and 51 other countries (RBC 2011). In May 2004, the Royal Bank of Canada experienced a crisis which involved a programming change to an essential piece of banking software. Generally, this is

William, M (2003). Barbados: a brief look at Barbados’ financial system. Euromoney,. 31-34. Retrieved from http://search.proquest.com/docview/198920608?accountid=12085

Banking is an important part of the Bahamian economy because it generates a source of income for The Bahamas. In fact, banking which is a TERTIARY industry is the second largest industry in The Bahamas. The first bank in The Bahamas was the Government Savings Bank established in 1836. It was also known as the Public Bank of The Bahamas but closed in 1886. In the same year of its collapse, a Government Savings Bank was established under the control of the Post Office Department. The Bank of Nassau was then opened in 1889 and for nearly thirty years played an important role in the commercial life of The Bahamas. However, due to mismanagement, it failed in 1916.