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Author: Ravi Kumar Singh
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The fundamental task and responsibility of central banks is to maintain and promote the stability of the financial system. In order to achieve this, central banks strive to prevent crises using all the instruments at their disposal. If a crisis occurs, central banks play a significant role in efficient crisis management and the crisis resolution process. In spite of the crisis prevention activity of the authorities - including central banks - crisis events cannot be avoided. The crises potentially emerging in modern banking systems are basically the consequence of the imperfect functioning of financial markets. In addition, external shocks can trigger crises as well. In order to support the stability of the financial intermediary system and to help restore market confidence, there may be a need for central banks to carry out aggregate liquidity increasing measures which affect the market as a whole and for emergency liquidity assistance based on individual consideration, in line with the 'lender of last resort' function. Continuous development of crisis management work and the related instruments is needed in order to ensure quick and efficient central bank decisions. This article outlines the significant assistance that these exercises can provide for central bank decisions and for the development of co-operation between authorities.
Author: Ravi Kumar Singh
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The fundamental task and responsibility of central banks is to maintain and promote the stability of the financial system. In order to achieve this, central banks strive to prevent crises using all the instruments at their disposal. If a crisis occurs, central banks play a significant role in efficient crisis management and the crisis resolution process. In spite of the crisis prevention activity of the authorities - including central banks - crisis events cannot be avoided. The crises potentially emerging in modern banking systems are basically the consequence of the imperfect functioning of financial markets. In addition, external shocks can trigger crises as well. In order to support the stability of the financial intermediary system and to help restore market confidence, there may be a need for central banks to carry out aggregate liquidity increasing measures which affect the market as a whole and for emergency liquidity assistance based on individual consideration, in line with the 'lender of last resort' function. Continuous development of crisis management work and the related instruments is needed in order to ensure quick and efficient central bank decisions. This article outlines the significant assistance that these exercises can provide for central bank decisions and for the development of co-operation between authorities.
Author: Miao Han
Publisher: Palgrave Macmillan
ISBN: 9781349555482
Category : Performing Arts
Languages : en
Pages : 319
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Book Description
The respective legal frameworks that control central banks are shaped by whether they are market oriented or government controlled. However such stark distinction between these two categories has been challenged in view of the varying styles of crisis management demonstrated by different central banks during the crisis. This book uses comparative analysis to investigate how the global financial crisis challenged the role played by central banks in maintaining financial stability. Focusing on four central banks including the US Federal Reserve System, the Bank of England, the Bank of Japan and the People's Bank of China, it illustrates the similarities between the banks prior to the crisis, and their similar policy responses in the wake of the crisis. It demonstrates how each operated with varying levels of independence while performing very differently and facing different tasks. The book identifies some central explanatory variables for this behavior, addressing the mismatch of similar risk management solutions and varying outcomes. Central Bank Regulation and The Financial Crisis: A Comparative Analysis explores the legal challenges within central bank regulation presented by the global financial crisis. It emphasizes the importance of, and the limitations involved in, legal order and argue that in spite of integration and globalization, significant differences exist in central banks' approaches to risk management and financial stability.
Author: Matthias Haentjens
Publisher: Edward Elgar Publishing
ISBN: 1783474238
Category : Business & Economics
Languages : en
Pages : 640
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Book Description
In this timely Handbook, over 30 prominent academics, practitioners and regulators from across the globe provide in-depth insights into an area of law that the recent global financial crisis has placed in the spotlight: bank insolvency law. Research Handbook on Crisis Management in the Banking Sector discusses the rules that govern a bank insolvency from the perspectives of the various parties that are affected by these rules. Thus, whilst many bank insolvency rules have been enacted only recently and their application is still clouded by a host of uncertainties, this book takes the perspectives of the relevant authorities, of the bank and of the bank’s counterparties. Providing a comprehensive approach to crisis management in the banking sector, this Handbook will prove a valuable resource for academics, postgraduate students, practitioners and international policymakers.
Author: Mr.Garry J. Schinasi
Publisher: International Monetary Fund
ISBN: 1451854404
Category : Business & Economics
Languages : en
Pages : 19
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Book Description
What is the role of central banks in ensuring financial stability? This paper addresses this controversial subject, in part by drawing on the experiences in Europe, Japan, and the United States, and by examining four questions. What is meant by financial stability? Do central banks have a natural role in ensuring financial stability? What does a central bank need to execute this role effectively? How far have central banks actually gone in safeguarding financial stability? The experience drawn on in the paper suggest that central banks: have a natural role to play; at times may require supervisory information to execute this natural role; and have incurred risks to their balance sheets to ensure financial stability.
Author: Board of Governors of the Federal Reserve System
Publisher:
ISBN: 9780894991967
Category : Banks and Banking
Languages : en
Pages : 0
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Book Description
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.
Author: Richard Brearley
Publisher: Routledge
ISBN: 1134516355
Category : Business & Economics
Languages : en
Pages : 329
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Book Description
An overview of present day thought on the very topical subject of financial stability and central banking. The papers, written by leading researchers, provide a highly informed account of contemporary policy issues and explore the legal, regulatory, managerial and economic issues that affect central banks.
Author: Mr.Patrick Downes
Publisher: International Monetary Fund
ISBN: 9781557751850
Category : Business & Economics
Languages : en
Pages : 476
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Book Description
Central Banks should enjoy a fair degree of autonomy in pursuing price stability to promote long-run growth and prosperity. This volume, edited by Patrick Downes and Reza Vaez-Zadeh, contains the papers presented at the fifth IMF seminar on central banking issues in November 1990. The theme was the interdependence of central bank functions and the role of central bank autonomy.
Author: Bradley Jones
Publisher: International Monetary Fund
ISBN: 1484345711
Category : Business & Economics
Languages : en
Pages : 30
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Book Description
Motivated by the tension first revealed during the global financial crisis between the domestic and international financial stability obligations of central bank reserve managers, this paper offers some reflections along four main lines. First, the paper highlights how official reserve management has evolved to mirror important aspects of private institutional investor behavior over time, and addresses the policy relevance of this convergence. Second, evidence is documented of procyclical portfolio behavior by reserve managers during the crisis, which added to the stabilization burden shouldered by central banks in reserve currency-issuing countries. Third, in appraising the evolution of related vulnerabilities since the crisis, the paper finds grounds for both cautious optimism and lingering concern, the balance of which points to an uncertain future resolution. Fourth, some potential remedies are presented to help dampen the procyclical impulses of reserve managers in future periods of international financial turbulence.
Author: Darryl King
Publisher: International Monetary Fund
ISBN: 148430585X
Category : Business & Economics
Languages : en
Pages : 50
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Book Description
This paper considers the central bank mandate with respect to financial stability and identifies the links to the functioning of securities markets. It argues that while emergency support to securities markets is an important part of the crisis management response, a high bar should be set for its use. Importantly, it should be used only as part of a comprehensive policy package. The paper considers what types of securities markets may be important for financial stability, what market conditions could trigger emergency support measures, and how programs can be designed to restore market functioning while minimizing moral hazard.
Author: Jukka Pihlman
Publisher: International Monetary Fund
ISBN: 1455201332
Category : Business & Economics
Languages : en
Pages : 29
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Book Description
A decade-long diversification of official reserves into riskier investments came to an abrupt end at the beginning of the global financial crisis, when many central bank reserve managers started to withdraw their deposits from the banking sector in an apparent flight to quality and safety. We estimate that reserve managers pulled around US$500 billion of deposits and other investments from the banking sector. Although clearly not the main cause, this procyclical investment behavior is likely to have contributed to the funding problems of the banking sector, which required offsetting measures by other central banks such as the Federal Reserve and Eurosystem central banks. The behavior highlights a potential conflict between the reserve management and financial stability mandates of central banks. This paper analyzes reserve managers’ actions during the crisis and draws some lessons for strategic asset allocation of reserves going forward.
