The Federal Reserve System
Информация - Экономика
Другие материалы по предмету Экономика
k of England, as well as a temporary augmentation of the existing arrangement with the Bank of Canada. The purpose of these arrangements was to enable the foreign central banks to lend dollars to local financial institutions to facilitate the settlement of their dollar obligations and to guard against possible disruptions to the global payments system. The European Central Bank drew $23.5 billion of its swap line; the balance was repaid after three days. The other central banks did not draw on their lines. The temporary arrangements lapsed after thirty days. Federal Reserve is interested in the international activities of banks, not only because it functions as a bank supervisor but also because such activities are often close substitutes for domestic banking activities and need to be monitored carefully to help interpret U.S. monetary and credit conditions. Moreover, international banking institutions are important vehicles for capital f lows into and out of the United States. international banking activities are conducted depends on such factors as the business needs of customers, the scope of operations permitted by a countrys legal and regulatory framework, and tax considerations. The international activities of U.S.-chartered banks include lending to and accepting deposits from foreign customers at the banks U.S. offices and engaging in other financial transactions with foreign counterparts. However, the bulk of the international business of U.S.-chartered banks takes place at their branch offices located abroad and at their foreign-incorporated subsidiaries, usually wholly owned. Much of the activity of foreign branches and subsidiaries of U.S. banks has been Eurocurrency business-that is, taking deposits and lending in currencies other than that of the country in which the banking office is located. Increasingly, U.S. banks are also offering a range of sophisticated financial products to residents of other countries and to U.S. firms abroad. international role of U.S. banks has a counterpart in foreign bank operations in the United States. U.S. offices of foreign banks actively participate as both borrowers and investors in U.S. domestic money markets and are active in the market for loans to U.S. businesses. (See chapter 5 for a discussion of the Federal Reserves supervision and regulation of the international activities of U.S. banks and the U.S. activities of foreign banks.) banking by both U.S.-based and foreign banks facilitates the holding of Eurodollar deposits-dollar deposits in banking offices outside the United States-by nonbank U.S. entities. wordsly, Eurodollar loans-dollar loans from banking offices outside the United States-can be an important source of credit for U.S. companies (banks and non-banks). Because they are close substitutes for deposits at domestic banks, Eurodollar deposits of nonbank U.S. entities at foreign branches of U.S. banks are included in the U.S. monetary aggregate.
Conclusion
Federal Reserve makes its own contribution to the nation of economic and financial goals, working on finance and credit in the economy. As the countrys central bank, it provides long-term economic growth within its capacity, while ensuring reasonable price stability. In a nutshell, the Fed seeks to implement its policies so as to combat the deflationary and inflationary pressures as they arise. And as a lender of last resort in a crisis situation, it is responsible for using the tools of their policies in order to prevent a national crisis of liquidity and financial panic.Reserve System has been entrusted to many monitoring and regulatory functions. For example, it is liable for the amount of credit used for the purchase or sale of securities, regulate overseas activities of all U.S. banks and foreign banks. Monitors compliance with laws governing bank holding companies, controls the banks, registered at the state and are members of the Fed, sets rules to protect consumers' interests.the federal government, the Federal Reserve System was designed to be a compromise between national and regional powers. Its regional base-the 12 Reserve Banks-makes the System more flexible and innovative and ensures that its decisions and actions are broadly based. The Board of Governors, acting as general overseer of the Reserve Banks, helps coordinate the System's operations. And the System's most important function-formulating and implementing monetary policy-is carried out in light of both regional and national concerns by the FOMC, the Reserve Banks, and the Board of Governors.Federal Reserve's major functions account for its structure and for its unique position in the federal government. Accountable to the government but working independently within it, the System is able to pursue its monetary policy goals without undue pressures from short-term political considerations. Since its founding in 1913, the Federal Reserve System has evolved to meet the needs of a changing financial system and a growing economy. Its unique structure, however, remains its most outstanding feature and its greatest strength.
List of Literature
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Appendixes
federal reserve bank policy foreign
Table 1 Stockholders of the Federal Reserve Bank
DISTRICT - NEW YORK
Class A
NameTitleTerm expires December 31Richard L. CarrinChairman, President and Chief Executive Officer Popular, Inc. San Juan, Puerto Rico2010Charles V. WaitPresident, Chief Executive Officer, and Chairman The Adirondack Trust Company Saratoga Springs, New York2011James DimonChairman and Chief Executive Officer JPMorgan Chase & Co. New York, New York2012
Class B
NameTitleTerm expires December 31James S. TischPresident and Chief Executive Officer Loews Corporation New York, New York2010Jeffrey R. ImmeltChairman and Chief Executive Officer General Electric Company Fairfield, Connecticut2011Jeffrey B. KindlerChairman and Chief Executive Officer Pfizer, Inc. New York, New York2012
Table 2 The organizational structure of the U.S. Federal Reserve
Table 3 Interest rates Required and Excess Reserve Balances, October- November 2010