International Central Banks European Central Bank (ECB) Bank of England (BoE) Bank of Japan (BoJ) by Poochapa R.

International Central Banks• European Central Bank (ECB)• Bank of England (BoE)• Bank of Japan (BoJ)

by Poochapa R.

European Central Bank (ECB)

• Located in Frankfurt, Germany• Established in June 1998• Euro, single currency• Officially introduced in Jan 1st, 1999• 12 Countries member• Denmark, Sweden, UK

European Central Bank (ECB)

Organizational Structure• President• Vice-President• 6 members in Executive Board• Implementing decisions made by 2

overall councils

European Central Bank (ECB)

The Governing Council

• 6 members of Exec. Board &12 Governors

• 2 times/month Meeting

• Set Interest Rate & Euro Changeover decisions

The General Council• President & Vice

President• 12 Governors from

Euro• 13 Governors from

Non-Euro• Quarterly Meeting• All issues about EU

countries

European Central Bank (ECB)

Monetary Policy• Price Stability

– 2% Inflation Target

– 4.5% M3– Set by

Governing Council

• Foreign Exchange Reserve– 2% of Liabilities– Keeping a

minimum reserve with ECB

European Central Bank (ECB)

Main Responsibilities• Monetary Policy• FX Operations• Foreign Reserves• Banknotes• Payment System

Additional Tasks• Stat Info.• Developments in Bank/Fin sectors

European Central Bank (ECB)

The Euro Weakness• GDP• Productivity Growth & Investment

Profitability • Investors’ Confidence• Investors’ Expectation --> $ is safe

place• Euro Overvaluation

Bank of England (BoE)

• “Old Lady of Threadneedle Street”• Located in London, UK• Founded in July 27, 1694• Bank of government• 2 departments; Issue & Banking• Pound currency

Bank of England (BoE)

Organizational Structure

• BoE– A Governor– A Deputy

Governor– 16 Directors

• 1694 Under Gov.• 1997

Independence

• Monetary Policy Committee (MPC)– The Governor– 2 Deputy Governors– Chief Economist– Exec Director of Mkt

Operation– 4 external members

Bank of England (BoE)

Monetary Policy• Maintaining the price stability• Setting Interest RateMPC• Monthly Meeting• One person, One vote• Transparency• Quarterly Inflation Report• National Changeover Plan (NCP)

Bank of Japan (BoJ)

• Located in Tokyo, Japan• Founded in 1882 (Meiji 15)• Independence from MoF• FX transactions• Yen currency

Bank of Japan (BoJ)

The Policy Board• A Governor• 2 Deputy Governors• 6 Deliberate Members• 2 times/month Meeting• Monthly Report & Monthly Econ

Report (Tanken)

Bank of Japan (BoJ)

Monetary Policy• ZIRP• Overnight Call Rate• Repo transaction• Business Survey

Thank you/Question ?