Transcript Central Banks

Tosaporn Lokitsataporn(Nae) G.11
Thailand Central Bank Logo
Thailand Central Bank's Functions
 The Bank of Thailand has international representation in London and New
York City as well. In Thailand, the bank is split into three groups: The
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Northern, Northeastern, and Southern groups.
The reason for this is to better analyze and study regional areas more carefully
and to prevent illegal activities and business practices on a more local scale.
The Bank of Thailand has several primary functions for its role in the economy.
*Print and issue banknotes and other security documents (Currency of Thailand
is the baht)
*Promote monetary stability and formulate monetary policies.
*Manage the BOT’s assets
*Provide banking facilities to the government and act as the registrar for the
government bonds
*Provide banking facilities for the financial institutions.
*Establish or Support the establishment of payment system
*Supervise and examine the financial institutions
*Manage the country’s foreign exchange rate under the foreign exchange system
and manage assets in the currency reserve according to the Currency Act.
*Control the foreign exchange according to the exchange control act.
 One of the bank’s most important functions is controlling the core interest
rate, which has been monitored closely since its inauguration. This process is
calculated meticulously in the head office of the Central Bank, which is split
into twelve groups/departments. They are as follows:
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*Monetary Policy Group
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*Financial Markets Operations Group
3.
*Financial Institutions Policy Group
4.
*Supervision Group
5.
*FIDF Management Group
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*Management Assistance Group
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*Information Technology Group
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*Strategic Capabilities Group
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*Operations Group
10. *Banknote Management Group
11. *Internal Audit Group
12. *Financial Risk Management and Operations Department
Roles and Responsibilities of
Thailand Central Bank
 The bank of Thailand's mission is to provide a stable financial
environment for sustainable economic growth in order to
achieve continuous improvement in the standard of living of the
people of Thailand.
 It defines its roles as:
1. Print and issue bank notes and other security documents
2. Promote monetary stability and formulate monetary policies
3. Manage the BOT’s assets
4. Provide banking facilities to the government and act as the
registrar for the government bonds
5. Provide banking facilities for the financial institutions
6. Establish or Support the establishment of payment system
Supervise and examine the financial institutions
Manage the country’s foreign exchange rate under the foreign
exchange system and manage assets in the currency reserve
according to the Currency Act
9. Control the foreign exchange according to the exchange
control act
10. Since May 2000, the bank has targeted inflation, replacing
money supply as the core of its monetary policy. Its current
target for core inflation is 0.5%-3.0%.
11. Interest rates are designated by the Monetary Policy
Committee, which comprises three officials from the Bank of
Thailand and four other experts.
12. The Bank is active in developing financial inclusion policy and
is a member of the Alliance for Financial Inclusion
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Thailand Central Bank's Federal
Reserve
 The Thai National Banking Bureau, the precursor to the central
bank, was established in 1939 as part of the Ministry of Finance
and was the first organization to assume central banking
activities in Thailand. When World War II spread to Asia, the
government changed the status of the Bureau to a central bank
through the passage of the Bank of Thailand Act in 1942, which
decreed the Bank of Thailand the legal entity responsible for all
central banking activities.
 The Minister of Finance is empowered to oversee the overall
affairs of the Bank, with general control and direction entrusted
to a court of directors, comprised of the governor and deputy
governors, appointed by His Majesty the King as chairman and
vice chairmen respectively, and at least five assistant governors
appointed by the Cabinet.
Central Bank of Canada Logo
Central Bank of Canada's
Functions
 The Bank of Canada (BOC) is a central economic and financial institution in
Canadian government and politics. It oversees such important things as the
national borrowing rates (interest rates), as well as the value of the Canadian
dollar relative to other national currencies.
Roles and Responsibilities of
Central Bank of Canada
 Regulate credit and currency
 Control and protect the external value of the national
monetary unit
 Use monetary action to mitigate fluctuations in the general
level of production, trade prices, and employment.
 The Bank administers the nation’s currency, protects its
value, and acts as the government's and chartered banks'
official banker. The Bank of Canada's most important
function is to set monetary policies that will promote a
healthy economy. This is accomplished primarily through
taking steps to raise and lower interest rates.
Central Bank of Canada ‘s Federal
Reserve
 Further to the 9 May 2010 announcement that the Bank of Canada and
the U.S. Federal Reserve have agreed to the re-establishment of the
US$30 billion swap facility (reciprocal currency arrangement), the
Bank of Canada and the U.S. Federal Reserve today published the text
of that swap arrangement.
 As mentioned in the 9 May 2010 announcement, the Bank judges that
it is not necessary for it to draw on its swap facility at this time, but that
it is prudent to have the arrangement in place. Should the swap be
drawn on, the details of the facilities through which US dollar liquidity
would be provided to the Canadian financial system would depend on
the specific market circumstances at that time.
 The Bank of Canada is closely monitoring global market developments
and is committed to providing liquidity as required to support the
stability of the Canadian financial system and the functioning of
financial markets.
 The nation needs a money manager because money does not
manage itself. Money and credit are the lifeblood of the
economy; they facilitate commerce, job creation, and business
growth. As our nation's money manager, the Fed implements
monetary policy to manage the flow of money and credit in the
economy.
 If money and credit expand too rapidly, businesses cannot
produce enough goods and services to keep up with increased
spending. Prices may rise, causing inflation. If the flow of money
and credit contracts too greatly, spending and business activity
may dwindle, workers may lose their jobs, and a recession may
result.
 As our nation's money manager, the Fed conducts monetary
policy to attempt to balance these two extremes to keep prices
steady, workers employed, and factories productive.
Thank You