Why Study Central Bank Governance - 3229 Words

Dissertation Concept Paper Why Study Central Bank Governance? Background of the study The global financial crisis, several years ago, has raised an essential question about the role of the central banks (CBs) in promoting banking stability. One of the important lessons of the crisis is that central banks will unavoidably be involved during the occurrence of a banking crisis since the CBs are able to provide large amounts of liquidity in very short notice, to both the banking system as a whole and to individual bank. Prior to the crisis, a common compromise emerged about the function and position of the CBs. Although the CBs’ primary objective is to maintain price stability, as the need arises, a CB is seen to play roles that may be inconsistent with its core goal. However, these actions of the CBs may be necessary for banking stability in the country. These may include bailing out the insolvent banks, managing the government’s financial transactions, financing budget deficits through the issuance of money, and financing the development projects undertaken by the government (Cukierman et al., 1992). All of these tasks influence the stability of the banking sector directly or indirectly and thus are also related to a banking crisis. The instability of the banking sector can be influenced both in the short and long run. Statement of Problem Even though the CBs have the prominent and important function to influence the stability of the banking sector, the ultimateShow MoreRelatedWhy Study Central Bank Governance3403 Words   |  14 PagesDissertation Concept Paper I. Why Study Central Bank Governance in Asia? A financial crisis always raised an essential question about the role of the central banks (CBs) in promoting banking stability. One of the important lessons of the crisis is that central banks will unavoidably be involved during the occurrence of a banking crisis since the CBs should be able to provide large amounts of fund to recover the banking system from the crisis. Most of Asian countries have a central bank (or monetary authority)Read MoreExamples Of Regional Autonomy Law Of Indonesia1090 Words   |  5 Pagesbeen said as ‘absolute’ affairs of central governments, comprising foreign policy; defense and security; judicial; national monetary and fiscal; and religion. In the other words, local governments have the right, authority, and duties in all sectors except otherwise classified as ‘absolute’ affairs. This law also adopts what has been said as ‘concurrent’ affairs, meaning that both the central governments and local governments share their authorities. The central government authorities are, amongRead MoreInternational Accounting1598 Words   |  7 Pagesminutes Tutorial each week –†¯ Discussion of weekly assignment and questions from previous week s lecture topic –†¯ Case Study †¢Ã¢â‚¬ ¯ Oral presentations (2/3 students each tutorial) †¢Ã¢â‚¬ ¯ Judgement and Decis ion Making tasks (all students are expected to provide a written proof during the tutorial) AYB 311 - Dr Amedeo Pugliese Overview of AYB311: the assessment Assessment –†¯ Case Study –†¯ Research Paper –†¯ Final exam TOTAL 20% 25% 55% 100% You do not have to pass each piece of assessment to pass theRead MoreThis Political Study Will Define The Reemergence Of Nationalism1513 Words   |  7 PagesThis political study will define the reemergence of nationalism due to the failed economic policies of globalization in the Brexit EU Vote. The Brexit Vote defines the lack of economic security promised by the European Union, which had dominated much of Britain‘s global objectives in the world economy. However, the problematic banking issues of the European Central bank (ECB) and the bankruptcy of certain nation states, such as Ireland, Greece, and Portugal, have inspired a new nationalist movementRead MoreGlobalization and the Multinational Corporation: Multiple Choice Questions1378 Words   |  6 PagesChapter 1 Globalization and the Multinational Corporation 1.1 Multiple Choice Easy 1) Which of the following was created in an effort to promote free trade? A) World Trade Organization B) the Sarbanes-Oxley Act C) multilateral development banks D) the Organization for Economic Cooperation and Development Answer: A 2) Which one of the following is an investment from which the payoff over time is derived from the performance of an underlying asset? A) a common stock certificate B) aRead MoreSystematic Economic Change And Poverty Reduction1736 Words   |  7 PagesJames Stewart Matias Bianchi LAS/POL 364 11/2/2015 Systematic Economic Change and Poverty Reduction: The Effects of Governance on Inequality Liberalization is a term that has dominated the minds, and governments of Latin America from the advent of the region-encompassing debt-crisis of the 1980s. Many reforms, with the idea of opening up the market and reducing barriers to trade in order to increase growth, control inflation, and reduce social unrest, have taken hold in the region in notable countriesRead MoreDoes United States Need A Central Banking System?1740 Words   |  7 PagesDoes United States need a central banking system? The answer is in negation. Especially for the economy like that of United States, presence of a central banking system in place makes very less sense. There have been researches done on the subject ever since US became the superpower during early 20th century (investopedia). Most of these favor the existence of the central banking policy based on worldwide perspective and the motive with which Federal banking laws are implied. However, on the practicalRead MoreRelationship Between Financial Development And Economic Growth Using Time Series Modeling1303 Words   |  6 Pagescredit institutions and stock markets development on economic growth. Causality in each of the stated VAR models will be analyzed applying the Toda and Yamamoto (1996) approach to Granger Causality. In addition to exploring the long-run causality this study will also explore the effect of outside shock on endogenous variables in trivariate VAR models using the Impulse Response Function (IRF) method. Data set for Croatia consists of quarterly observations dating from 2000-2011 and consists of 48 observationsRead More1.1. The Effect Of The Financial Crisis On The GCC National Economy: The United stated1300 Words   |  6 Pagesdevelopment and dropping or cancelling investments to avoid the effects of high inflation rates. 1.2. The Dominance Of The Government To The Banking Sector: â€Å"Government ownership and its impact on banks are controversial†. And that comes from a serious fact states that the ownership of GCC banks are dominated mainly by the government, so the banking sector is owned by the local forces that dominate the market. That situation reflects in the limitation of foreign ownership because of the ownershipRead MoreFinancial Crisis And The Failure Of Corporate Governance1759 Words   |  8 Pagesthe liquidity risk followed behind. Even though the central banks of many countries tried to turn around the situation by injecting huge amount of capital to the financial market, the financial crisis still broke out and spread to Europe and other parts all over the world especially on the backing sector. The purpose of the essay is to identify the causes of the global financial crisis on the angle of the failure of corporate governance in UK banks such as Northern Rock and RBS which will be discussed