The Reserve Bank of New Zealand is New Zealand's central bank and has three main functions. These are:
operating monetary policy to maintain price stability; promoting the maintenance of a sound and efficient financial system; and meeting the currency needs of the public.
Reserve Bank of New Zealand 2 The Terrace PO Box 2498 Wellington New Zealand
As the central bank of the Republic of Malawi, we are committed to promoting overall financial - system soundness and monetary stability. In pursuing this goal, we shall endeavour to carry out our duties professionally and exclusively in the long-term interest of the national economy. To achieve this, we shall be a team of professionals dedicated to international standards in the delivery of our services.
Head Office P O Box 30063 Capital City Lilongwe 3 Malawi Convention Drive City Centre Lilongwe Malawi (265) 01 770600 (265) 01 772752 (265) 01 774289
The Reserve Bank of Australia's (RBA) main function is monetary policy. Policy decisions are made by the Board, with the objective of achieving low and stable inflation over the medium term. Other major roles are maintaining financial system stability and promoting the safety and efficiency of the payments system. The Bank is an active participant in financial markets, manages Australia's foreign reserves, issues Australian currency notes and serves as banker to the Commonwealth Government. The information provided by the Reserve Bank includes statistics - for example, on interest rates, exchange rates and money and credit growth - and a range of publications on its operations and research. Phone +61 2 9551 8111 or 1800 300 288 * Fax +61 2 9551 8000 Postal Address The Secretary Reserve Bank of Australia GPO Box 3947 SYDNEY NSW 2001 AUSTRALIA SWIFT Address RSBKAU2S ABN 50 008 559 486
The People's Bank of China (PBC) is the central bank of the People's Republic of China. Its chief mandate is to formulate and implement monetary policy and supervise and regulate the financial industry. The PBC was established on December 1, 1948 based on the consolidation of the former Huabei Bank, the Beihai Bank and the Xibei Peasant Bank. In September 1983, the State Council decided to have the PBC function as a central bank. The Law of the People's Republic of China on the People's Bank of China passed on March 18, 1995 legally confirmed the PBC's central bank status. The PBC's main functions include: formulating and implementing monetary policy; issuing and administering the circulation of the currency; licensing and supervising financial institutions; regulating financial markets; managing official foreign exchange and gold reserves; acting as fiscal agent; maintaining payment and settlement system; collecting and analyzing financial statistical data; participating in international financial activities at the capacity of the central bank; and overseeing the State Administration of Foreign Exchange. Located in Beijing, the head office of the PBC consists of 13 functional departments, namely, Governor's Office, Legal Department, Monetary Policy Department, Banking Supervision Department I, Banking Supervision Department II, Department of Non-Bank Financial Institutions, Department of Cooperative Finance, Statistics Department, Accounting and Treasury Department, Payment System and Technology Development Department, International Department, Internal Auditing Department, and Personnel and Education Department. In order to ensure scientific formulation and implementation of monetary policy and effective supervision of financial institutions, the functional departments are complemented by five supporting departments, namely, the Research Bureau, the Bureau of Currency, Gold and Silver Administration, the Bureau of State Treasury, the Security Office, and the Training Center. The PBC maintains two operations offices, nine regional branches, 326 prefecture-level sub-branches and 1827 county-level sub-branches. Other affiliates of the PBC include the Bank Note Printing Company, the Clearing Center, China Foreign Exchange Trading Center, and a number of representative offices in major international financial centers. Address: No.32 ChengFang Street,XiCheng district,Beijing,China PostCode:100800 Tel:86-010-66194114
The Objective of the PMA is to secure the stability of the banking and monetary system and encourage economic growth in Palestine in accordance with general policy of the PNA.
PMA Objectives:
Regulating and managing the currency. Holding and managing the PNA's gold and foreign currency reserves. Consolidating and regulating the quantity and cost of credit in accordance with the requirements and necessities of the Palestinian economy. Maintaining an efficient and developed banking system.
Objectives and Responsibilities Norges Bank shall work within the guidelines laid down by the political authorities and shall help to promote confidence in the Norwegian economy and its financial system.
We will achieve this by:
Contributing to balanced economic developments and to attaining the inflation target Contributing to stable and efficient financial markets and payment systems Satisfying society's need for banknotes and coins Ensuring efficient and secure management of the central government's financial assets We shall be efficient and capable of assuming new responsibilities and addressing challenges. Commitment and high professional standards shall characterise our work.
Norges Bank is organised into wings and departments with their own prime objectives, action plans and performance targets.
The Bank of Japan's missions are to maintain price stability and to ensure the stability of the financial system, thereby laying the foundations for sound economic development. To fulfill these two missions, the Bank conducts the following activities.
The Bank of Japan issues banknotes (officially referred to as Bank of Japan notes) as the nation's sole "issuing bank." It employs a wide range of measures to prevent counterfeiting, including watermarks, special inks, and micro-lettering.
Worn and soiled banknotes make it more difficult to distinguish genuine notes from counterfeits, which may proliferate as a result. Therefore, the Bank of Japan checks the validity and cleanness of each of the banknotes which return to the Bank, destroying badly worn notes and putting only those that are in good condition back into circulation.
Because banknotes are used in all kinds of transactions, the Bank pays close attention to the control of the physical quality of banknotes so that the public is able to use the notes with confidence.
What if the prices of your daily necessities and food were to rise continuously? You would need to spend more money to buy the same basket of goods. In other words, the purchasing power of your money would go down. If the prices of various goods rose, people would naturally have a harder time making a living.
On the other hand, what if the prices of goods were to decline continuously? A decline in prices appears to be favorable to consumers as they can buy the same basket of goods more cheaply. But if prices were to decline continuously, both the sales and profits of firms that produce or sell goods would decrease. As a result, the salaries of workers at those firms would decrease and the number of unemployed persons might increase.
A continuous rise in the prices of goods and services is generally referred to as "inflation," and a continuous decline in prices is referred to as "deflation." As you can see from the above, both inflation and deflation are a threat to our daily lives.
When the economy enters a period of inflation in which the purchasing power of money is gradually eroded, people's confidence in money will diminish. If many people considered that the prices of goods and services would continue to rise in the future, they would rush to buy goods and services before prices rose even further. This would create upward pressure on prices, thus increasing the likelihood that the anticipated rise in prices would actually take place. In contrast, if people considered that prices would continue to decline in the future, they would wait to make their purchases until prices had declined further. Thus, they would spend less and save more and economic activity might eventually be endangered. Both inflation and deflation distort the distribution of income and assets across the economy, and disrupt financial transactions, which involve the lending or borrowing of money.
The Bank of Japan's mission is to pursue price stability, in other words to maintain an economic environment in which there is neither inflation nor deflation.
The Bank controls the overall volume of money in the economy and interest rates on a daily basis through money market operations, i.e., through its sales/purchases of money market instruments such as Japanese government securities (JGSs) to/from private financial institutions.?@The Bank's policy to stabilize prices, thereby contributing to the sound development of the national economy, is called monetary policy. For example, if Japan's economy weakened so that sales of goods declined and there was downward pressure on prices, the Bank would buy money market instruments such as JGSs from private financial institutions, thus increasing the volume of money in the economy and lowering interest rates. More money in circulation and lower rates enable firms to borrow money more easily and act as a spur to economic activity: more people purchase goods and services, and thus prices are less likely to decline.
Conversely, if economic activity heated up, with goods selling too well and upward pressure on prices, the Bank would reduce the volume of money in the economy and would raise interest rates. Accordingly, economic activity would be dampened and prices would be unlikely to rise.
As noted above, the Bank conducts monetary policy to achieve price stability, thereby contributing to the stability of the economy as a whole. The Bank believes that price stability is a prerequisite for stability in our daily lives and for realizing sustainable and balanced economic growth.
C. Providing Settlement Services and Ensuring the Stability of the Financial System
The term "financial system" refers to the collective mechanisms through which financial institutions intermediate funds between depositors and investors and provide payment and settlement services, such as funds transfers between accounts. The financial system constitutes a fundamental social infrastructure that supports our daily lives, as is the provision of electric power, water, and gas. The Bank of Japan conducts various activities to maintain this particular infrastructure.
1. Provision and Maintenance of the Settlement System
Financial transactions between financial institutions are settled by transferring funds across the current accounts held by each institution at the Bank of Japan. Because it offers accounts to financial institutions, the Bank is often referred to as the "banks' bank." The amount settled across the accounts at the Bank of Japan totals over ¥300 trillion per day. In order to facilitate such funds transfers, the Bank operates an electronic settlement system, the Bank of Japan Financial Network System (BOJ-NET), and is constantly working to upgrade and improve the efficiency of the settlement system.
2. Monitoring and Examination of the Financial and Management Conditions of Financial Institutions
The sound management of individual financial institutions is a prerequisite to the stable functioning of the financial system. The Bank of Japan thus closely monitors trends in the loans and deposits of financial institutions, and the Bank's staff regularly visits financial institutions to carry out an "on-site examination" to review their financial and management conditions.
3. Function as the Lender of Last Resort
When a financial institution becomes insolvent and this is likely to pose a threat to the financial system, the Bank of Japan may provide emergency liquidity to the troubled institution in its role as the "lender of last resort" in an effort to prevent financial disorder.
D. Treasury and Government Securities-Related Operations
As the "government's bank," the Bank of Japan handles receipts and disbursements of treasury funds, including acceptance of tax monies and payment of public works expenditures and public pensions. It also conducts accounting and bookkeeping for government agencies.
In addition, the Bank deals with the entire business of Japanese government securities, namely issuance, registration, interest payment, and redemption. Settlement of funds and Japanese government securities arising from the above operations are facilitated by the BOJ-NET.
The Bank of Japan engages in the following international activities.
1. International Financial Transactions and Operations
The Bank provides yen accounts to central banks and governmental institutions overseas. It also makes capital subscriptions and loan extensions to international organizations such as the Bank for International Settlements (BIS) and the International Monetary Fund (IMF).
2. Intervention in the Foreign Exchange Markets
The Bank closely monitors exchange rate developments. It intervenes in the foreign exchange market as an agent of the Minister of Finance, when necessary.
3. International Exchange of Views
The Bank of Japan frequently participates in discussions held at various international forums, such as the meetings at the BIS, the G7, and the IMF. Topics of discussions range widely, from monetary policy and the foreign exchange markets to bank supervision and settlement systems. Exchange of views with overseas central banks is important in strengthening cooperative relationships among the central banks.
F. Compilation of Data, Economic Analyses and Research Activities
To ensure appropriate implementation of monetary policy, the Bank of Japan must have an accurate understanding of the overall economic and financial conditions in Japan. To this end, the Bank compiles various statistics, including the Wholesale Price Indexes, the Corporate Service Price Index, and money stock. It also conducts a regular business survey known as the Tankan -- Short-Term Economic Survey of Enterprises in Japan. Based on these and a wide variety of other statistical data, including those prepared by government agencies and other organizations, the Bank reviews Japan's financial and economic conditions. In addition, the Bank's head office and branches make direct contact with a large number of firms to directly receive their views on the economy. The Bank also conducts opinion polls of the public when necessary, to which Bank's careful attention is paid. The Bank explains its view mainly through the publication of results of these analyses. Additionally, the Bank is able to receive the public's views and opinions through the Public Relations Department.
Further to the above activities, the Bank is also engaged in theoretical research from a longer-term perspective, on issues such as monetary policy and the financial system.