Structure of the Federal Reserve System and Banks

Structure of the Federal Reserve System and Banks The structure and mission of the European Central Bank, The Bank of Japan and The People’s Bank of China. Do any of these central banks resemble the structure of the Federal Reserve System? If so in what ways? Abstract The central bank is the national currency issuers, is countrys bank, is banks bank. Different countries have different central bank structure and mission. Different structure and mission will influent the independence of the central bank.[documents] Therefore, this topic mainly around the ECB, FDS, PBOC and BOJ to compare their structure and mission. Specific analysis following aspects: capital structure, power structure, organization form, operation and supervision department, objective and monetary policy tools. Using these contains to analysis the influence of these aspects for central bank independence. It will mainly compare to the similar and difference between these four central bank. Our results indicate that power structure is the main factors influencing the independence of central bank. The capital structure has no great effect to its independence. Due to the nature of central bank, different central banks have similar missions. Their monetary tools are also very similar, mainly through open market operations and reserve requirements. Finally, we find that European central bank have highest independence in comprehensive view.The second highest independence is FRS. PBOC has lowest independence between these four central banks. The main reason is that PBOC is the only one directly belong to thethe State Council. It means PBOC is a government apartment. But there also have other influent factor about independence which analysis in the article. Introduction As the main implement institutions of monetary policy in a country, central bankshas a very important position for the countrys economic development. Meanwhile, it has a vital influence for the social employment security stability and price stability.Due to the different economic backgroundand organization structure in the different country, its structure and the mission of the central bank is not entirely same. Therefore, this report mainly compared the similarities and differences between four central banksthrough detailed analysis their structure and functions.At the same time, this article aims to discuss whether these differences will bring different level of central bank independence. Central bank independence is a significant problem. Lots of previous academic studies have shown that independence is an important factor to influence the national inflation rate. Additionally, the structure of this paper is as follows. Section 2 provides a literature review on the different aspect and effect of central bank structure and mission. Section 3 explains the specific aspect of structure and mission in our case study. It has 3 parts, capital structure, power structure, missions and independence of central bank. Section 4 is a summary of the papers findings.Previewing our results, we find that missions of central bank are similar because of the central bank nature.Asà £Ã¢â€š ¬Ã¢â€š ¬the same time, difference power structure will lead different independence, then affect monetary policy and the rate of inflation. 2. Background Literature According to the existing literature in central bank structure, as Schoenmaker (2013) points out, it can divided into several aspects: Banks capital structure and quantity, level of economic development, level of central bank independence. ButD. Schoenmaker (2013) mainly through the analysis of inflation index to evaluate independence, because the central bank’s common methods is through monetary policy to control inflation then keep the economic stability. First, about central bank capital aspect, animportant research results isCBFS modelwhich created byPosso and Tawadros (2013).It shows that central Banks capital strength and the rate of inflation is inversely related. But, in oppose, another view fromStella (1997)thinks that the central bank does not need a lot of capital because it is hard become bankrupt.However, in our opinions, enough capital can give central Banks greater ability to face risk. Therefore, based on this view, we will compare the capital structure between ECB, FED, PBOC and BOJ. After that, we reviewed power structure of central bank aspect. It is mainly around the external organizational form and branch institutions. Meanwhile, we consider different central bankstructureand task determines its independence. At present, we find that a lot of economics research thinks that independence and inflation rate is negative correlation. One of results fromArnone and Romelli (2012)has great guiding significance .Arnone and Romelli(2012) not only test the developed countries central banks, like FED,BOJ. Their panel data also included lots of central banks from developing countries. But, however, they do not compare the difference between developing country and developed country. So, our research will pay more attention to this problem. Thirdly, review the literature for central bank mission research, Schoenmaker (2013) was made research and analysis for this. He considers central Banks have two major objectives: monetary stability and financial stability in the traditional views.But we find that many countries have modified its development goalsmany timesin recent decades, especially the reform of PBOC in 2003.Because the development of economic. So, our research will use our four countries latest laws and regulations as a basis to comparison their mission. 3. Analysis 3.1 Capital Structure Capital funds of central bank offered from the state or private or both. The source of capital funds will affect central bank system. It can be separate to state-owned, half state-owned and private-owned.. The capital structure of PBOC is quite single. It is fully owned by the state.In Article 8 of the peoples bank of China act (2003) point out that all the capital of PBOC are invested by the state, it shall be owned by the state. Nowadays, PBOC’s reserves areUS$3.201trillion. Meanwhile, BOJ capital structure is half state-owned. Bank of Japan is capitalized at 100 million yen in accordance with the Act. About 55 percent of the capital is subscribed by the government. Banking Act from Japanregulated that the BOJ do not set shareholders meeting. Shareholders can not join BOJs operation.Shareholders rights is only to get dividends per year and highest do not exceed 5%. The FRS is private equity capital form. All capital provided by private shareholders investment, after authorized by the government, then to perform the function of central Banks.FRScapital funded by12member Banks of federal reserve bank. Thesemember bank subscribe shares, get dividend per year in accordance with the stake, the highest dividend do not exceed 6%. ECB isSimilar to FRS. Itis also has share subscription, but all of share hold by member states in European Union. The amount of capital contribution is decided according to each member’s GDP proportionand populationproportion in EU.The ECB’s capital amounts toâ‚ ¬5billion.Reserves are 526 euro in total now. It can be find that only PBOC capital provided by government. Other three central banks have stock subscription. ECB is most similar than FED, all of capitalare funded by member banks or national member banks. However, this part only compared capital structure and reserves between these four banks. It is unable to see that the capital structure influence on independence, so later will compare the power structure 3.2 Power Structure 3.21 External Organizational form and branch institutions These four central bank external organizational form can be spate to 3 kinds: unit central bank systemà ¯Ã‚ ¼Ã…’Dual central bank systemà ¯Ã‚ ¼Ã…’Multinational central bank system. PBOC and the BOJ are unit central bank system. It means that a country only to set up a unified central bank to exercise power and dutyof the central bank. Central bank itself is unified, its branch institutions generally direct managed by central bank. Most countries adopt the wayat present. Because this mode is conducive to national manage and macroeconomic control. As the same time, it is obviously to limit level of branch institutions independence at central bank. FRS power structure is different from Japan and China.It use dual central bank system, means that the central bank system is composed of two parts: central (the board of governors) and local (member of Federal Reserve Bank). These two parts are relatively independent. The board of governorsis the highest financial decision-making body. Local accept the supervision from central. But local has rights in the concrete implementation and daily operation. So, local have their own independence. The Federal Reserve System divid es 12 areas, each area to set up a federal reserve bank. These 12 banks have independence in their own area. Additionally, ECB is Multinational central bank system. ECB and 27 national central banks compose to ESCB. National bank has own independence. So, we can find that ECB has highest level of independence because it not control by any government or state. The local also have own independence to operate. Similarly, FRS also has high independence level. 3.22 Inside Financial manage and supervision Although central bank not operate for profit, but itstill hasoperating income. Among these four central banks, BOJ and FRS revenue will belong to their countrys ministry of finance after dividends payment. Dividends payment proportion has been given in Section 3.1. In addition, at internalsupervision aspect, they have own supervision department respectively. At external supervision, it mainlysupervised fromgovernment with legal methods. Seminally, PBOCs all profits also belong to the ministry of finance in China, same as Japan and US. But supervision aspect, China was explicitly stipulated in the law amendment in 2003(PBOCs Act): the PBOC as a department under the state council of China, belong to the government departments. So, PBOC isdirectly regulated and supervise fromgovernment. ECB is different than other three banks, it has own financial independence. Operate revenue control by itself. ECB can make own budget. In supervision aspect, it accepts European Union rules. ECB should take responsible to offer report to European Parliament, the European Commission, and the Council of the European Union. But ECB do not control byany country or government. So, obviously, ECB have more independence in financial aspect than others. 3.3. Missions As a non-profit financial institutions,the mission ofthese central banktrends to be consistent: play its functions effectively andachieve their core goal. The main way is through monetary policy, to keep price stability, to promote economic development. According to the ECB official website state, the European Central Bank and the national central banks together constitute the Euro system. The main objective of the Euro system is to maintain price stability: safeguarding the value of the euro. In Japan, the Act sets the BOJs objectives is ‘to issue banknotes and to carry out currency and monetary control’ and ‘BOJ shall be aimed at achieving price stability’ Similarly in China, the Act of PBOC (2003) points out that PBOC’s missions are: to formulate and implement monetary policy, to maintain price stability, to provide financial services. In the US, the Board of Governors of the FRS and the Federal Open Market Committee shall ‘maintain long run growth of the monetary and credit aggregates commensurate to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates. (1977 Federal Reserve Reform Act specified) Monetary policy tools To sum up, we could find that these central bank’s missions all around to keep price stability. It is determined by the central bank’s nature. But their also has some different. For instance, the US also clearly point out FRS should maximum employment and moderate long-term interest rates. Similarly, their monetary policy tools also trends to be consistent, all mainly to use two methods: open market operations and reserve requirements. 3.4 Independence As background literature described, independence is an important aspect to the central bank. This part is extended based on above analysis, to compare these several central bank independence. In the angle of structure, despite these four central banks has different capital structure, but it didnt have obvious effect to independence. Because shareholders do not to participate operations, only charge a small amount of dividends. In organizational form aspect, BOJ and PBOC independence is lowest. Americansdual central bank systemgives more independence between the central and local. In this aspect, ECB system is similarly with FRS. In financial aspect, the biggest independent central bank still is ECB. Becauseother three central bank’s revenues are belong to their national Treasury. About supervision, except PBOC is directly control by government, other three central banks have great independence. They have their own internal supervision mechanism and external legislative intervention by the government. 4. Conclusions On the whole, we find that ECB, BOJ, FRD and PBOC missions are consistent. It is mainly around to keep price stability. Through the contrast of central banks objective and monetary tools also reflects their similarity. With the research of central bank structure and independence, ECB has highest independence,resemble to FRS.It should be mention that the ECB does not public members vote process, so the independence has been questioned in recent years. However, it is no doubt that the worst independence of central bank is PBOC. It is mainly caused by nationalization of the structure. In addition, our study is based on theoretical angle, around power structure and missions’ analysis, to evaluate its independence. It has not using quantitive data.But reference toMasciandaro,ect.(2008)released specific quantitative rating of the independence of the central bank, (A total of 19 criteria are identified to assess the degree of supervisory independence, and 21 for accountability.) the data are consistent with our analysis. They measured thatPBOC independence index is 0.47 and BOJ is 0.34. ECB and FRS independence is significantly higher. Thus, it could prove our results correctness. References Arnone, M., Romelli, D. (2012). Dynamic central bank independence indices and inflation rate: a new empirical exploration.Paolo Baffi Centre Research Paper, (2012-118). Masciandaro, D., Quintyn, M., Taylor, M. W. (2008). Inside and outside the central bank: Independence and Accountability in Financial Supervision: Trends and Determinants.European Journal of Political Economy,24(4), 833-848. Posso, A., Tawadros, G. B. (2013). Does greater central bank independence really lead to lower inflation? Evidence from panel data. Economic Modelling,33, 244-247. Schoenmaker D. (2013),Chapter 28 -Central Banks RoleinFinancial Stability HandbookofSafeguarding Global Financial Stability,271-284 Stella, P. (1997).Do central banks need capital?. International Monetary Fund.

Outline Ways to Help Children to Develop Communication and Language Skills Essay

Parents play a critical role in a child’s language and communication development. It is thought that children who are read to and spoken with during early childhood, will have a larger vocabulary and better grammar than those who aren’t. There are different ways in using language. Verbal ways are to question, clarify, describe, explain and debate. There are also non-verbal ways to communicate like listening, looking and touching. There are many ways to nurture your childs language and communication development. Being able to communicate and express ones self can build self confidence, self esteem and the knowing of ones self and surroundings Talking to your child, tell your child what is going to happen for example, â€Å"Now we’re going to take a bath. When you get dry, we’ll get dressed.† Reading. Parents can start with simple board books and progress to picture books and longer stories as their child gets older. Story times where they can use their imagination and have an input in the stories are also effective. Follow your child’s lead. Repeat there babbles and laughs back to them, ask questions and interact with them. If the child seems interested in a picture in a book, by talking about it and discussing it, this helps the child to develop an interest. Music. Young children love music and dance. When they listen to lively songs or rhymes they learn about the world around them and the rhythm of language. This can help the child learn to thread words together to form sentences. Repeat their statements back to them with the correct pronunciation or word usage. Give your child lots of praise for their efforts. Try not to pressure or expect to much from your child as this can discourage them in exceeding. Television and computers can influence speech and communication. Some educational programs can be beneficial to kids but tv shows don’t interact or respond to children. Computer games are interactive, but they aren’t changeable to a child’s ideas. Go on days out. A visit to the zoo, the aquarium or a museum will open up a whole new world. They may even want to learn the names of all the creatures and activities they experienced Role play. Role play is great for expanding your child’s imagination and introducing new vocabulary. Games involving different characters will allow you to introduce lots of new related language and stretch your child’s creative play skills. Pretending to be a firemen putting a fire out can introduce many relating words fire, fireman, fire engine, ladder, water, hose, burning, building, driving, climbing, up, down, smoke, hat, boots, jackets, save, squirt, bucket, fire out, hero, etc. Role play with others encourages the sharing of ideas and opinions.

Essay to explain role of support worker Essay

My job as support worker is based within a residential unit for eleven service users. It involves working day shifts on a fortnightly rotating rota. Before entering the unit, we have a code that we have to enter to allow us entry to the building. This code unlocks the front door, and is for safety and security of staff and residents, and complies with our duty of care. All employees and visitors have to sign in a book, kept within the hallway. This is so at any time, the manager has a detailed record of who is within the building, staff, residents, workmen, or visitors in case of that an emergency, or in case an evacuation procedure may arise. All visitors to the building are asked their identity. All the external doors can be opened from inside the building to allow persons to exit at any time, however the doors are alarmed. This alerts staff by the use of a paging device, carried by all support staff. This enables safety and security of all persons within the building. When my shift begins all staff have a hand over meeting, lead by the manager on duty. This ensures all important information is communicated: for example any medical or dental appointments that the residents may need escorting to. Or any health issues, or requests made by the residents to go out. Maintaining confidentiality at all times. Any updates or new risk assessments are handed over for all to read and sign. Working to all policies and procedures at all times. As a support worker, duty of care is an obligation that ensures that no harm is done to people in your care; if this duty of care is not met you are held accountable for the negligence which has occurred. We must put the best interests of service users health, safety and wellbeing as a priority to protect them and keep them safe from harm in all aspects of care, this includes: maintaining confidentiality, reporting concerns (both about service users and colleagues/ other professionals) and maintaining high standards of conduct; it is what underlies the Code of Practice on day to day working practice. Policies and procedures are in place to ensure that a  duty of care is implemented and carried out in working practice; this is a legal obligation which if not implemented into your working practice could be classed as negligence or malpractice which is a breach of duty. Duty of care is not just having correct working practice but also to maintain confidentiality of both service users and staff and not doing anything which could put them at risk. In my working role I have to think of duty of care when planning a task, taking everyone’s best interests into consideration. Other ways I implement duty of care into my working practice is to carry out daily checks to ensure the working environment is safe both for service user and employees. Duty of care also involves being aware of potential hazards, preventing mistakes/ accidents from occurring and making competent and informed decisions in the role. After greeting the service users, I often have a chat with them all individually to ask how their day has been, and what they would like to do for the rest of the day. It is important to empathise and actively listen in a sensitive manner accessing appropriate additional support where necessary, promoting equal opportunities and respecting diversity, different culture and values.

Lead effective meetings Essay - 1427 Words

Understand how to lead effective meetings A meeting is a gathering of two or more people which can be formal or informal and is convened to achieve a common goal through verbal interaction. Purpose of a meeting Meetings are held for a variety of reasons, with the most important being communication. Within the National Health Service we hold monthly staff meetings for the purpose of receiving updates from managers, exchanging information and ideas, sharing views, co-ordinating activities and formulating plans for the service we deliver. This type of meeting is also a good opportunity for staff to keep in touch, gather information, to express concerns as a collective and network. Meetings are also held to problem solve, make†¦show more content†¦They will draw discussions to and end and attempt to clarify any decisions and action plans to be formulated. A Chairperson should demonstrate active listening, engage all attendees and control the discussions where necessary. They also need to ensure they impose on the attendees any matters of confidentiality. The Secretary is responsible for recoding the minutes of the meeting accurately, concisely and without bias. They also record attendance, apologies and ensure there are sufficient copies of the previous minutes and any additional essential paperwork. Secretaries check the action plans, check they are completed and confirm the correct assigning of the actions. They also understand that the minutes are confidential to the meeting. The individuals attending the meeting have a responsibility to arrive at the meeting on time and prepared, having read the agenda in advance and any important items are researched. They need to attend with an open attitude, engage in active listening and be prepared to get involved. They should be polite to and respect other members and avoid personal conflict and confrontation. 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