Central banks

Ø 1) What is the role of the Central Bank in the Russian Federation? Where are the headquarters of the Central Bank in Moscow (Petrozavodsk)? What bank do you get your salary in?

Central banks (reserve banks or monetary authority) are normally government owned banks, often charged with quasi-regulatory responsibilities, e.g. supervising commercial banks, or controlling the cash interest rate. They generally provide liquidity to the banking system and act as Lender of last resort in event of a crisis.

Most richer countries today have an “independent” central bank – that is, one which operates under rules designed to prevent political interference. Examples include the European Central Bank, the Banco Central de Chile, the Reserve Bank of Australia, the Reserve Bank of India, the Bank of England, the Bank of Canada, Sveriges Riksbank, the Banco de la República de Colombia, Norges Bank, State Bank of Pakistan, National Bank of Azerbaijan and the U.S. Federal Reserve. Some central banks are publicly-owned, and others are, in theory, privately-owned. In practice, there is little difference between public and private ownership, since in the latter case almost all profits of the bank are paid to the government either as a tax or a transfer to the government.

The Bank of Russia (the Central Bank of the Russian Federation) is the central bank of Russia. Its functions are described in the Russian constitution and in the special Federal law. The Bank of Russia was founded on July 13, 1990, but its history traces back to the State Bank of the Russian Empire.

According to the constitution, the Bank of Russia is independent from the federal, regional and local government structures. Its primary responsibility is protecting the stability of the national currency, the ruble. It also holds exclusive right to issue ruble banknotes and coins.

The Bank of Russia is the main regulator of the banking industry. It is responsible for issuing banking licenses and setting rules of banking operations and accounting standards. The bank serves as a lender of last resort for credit organizations. Its headquarters are on Neglinnaya Street in Moscow.

The Bank of England is a state-owned institution and the central bank of the United Kingdom. It is responsible for managing the monetary policy of the country.

It was established in 1694 to act as the English Government’s banker, and to this day it still acts as the banker for the UK Government. The Bank has a monopoly on the issue of banknotes in England and Wales.

The Bank’s headquarters has been located in London’s main financial district, the City of London, on Threadneedle Street, since 1734. It is sometimes known as “The Old Lady of Threadneedle Street” or just “The Old Lady.”

The Federal Reserve System (informally The Fed) is the federal government’s bank or the central banking system of the United States. It lets other banks borrow money. The banks then let people and companies take the money from them. The banks then pay money at a rate called the Federal Funds Rate. This number is set by the Federal Reserve Board and is changed whatever money is in the country. The paid rate is called the “overnight lending rate” because money is borrowed for a short time.

Ø 2) Name the statements which are true:

a) Central Banks are always government owned ones.

b) The Bank of Russia is the oldest bank in Europe.

c) The Bank of Russia is the main regulator of banking industry in the country.

d) The Bank of England acts as the banker for the UK Government.

e) The headquarters of the Bank of England is in the City of London, on Downing street

f) The Federal Reserve System is the central banking system of the USA.

g) One can borrow money from the Federal Reserve System for a long period of time.

Дата добавления: 2015-11-14