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Objective of MCGF Keeping in view the importance of micro finance in a developing country context, the State Bank of Pakistan (SBP) has been encouraging banks/Development Finance Institutions ('DFIs') to [...]

Pakistan's financial system grew significantly in the last few years. At present, total financial assets have reached $175 billion (110% of GDP). The banking system constitutes 95% of the total [...]

Three years ago at this same conference, I was given an opportunity to talk about Japan's monetary policy in the years when asset price bubbles expanded. (1) Today, I would [...]

The Eurosystem comprises the European Central Bank at its center as well as the national central banks of the twelve countries currently participating in monetary union. (1) The European Central [...]

As the second oldest and perhaps the most renowned central bank, the Bank of England could provide some important insights into issues that may confront the Federal Reserve System in [...]

Monetary policy as conducted by the Swiss National Bank is aimed at maintaining price stability in the medium term. Between 1980 and 1999, the Bank used the seasonally adjusted monetary [...]

The goal of monetary policy as conducted by Norges Bank is to maintain low and stable inflation. The operational target of monetary policy is explicitly defined in a consumer price [...]

The Sveriges Riksbank, the Swedish central bank, is an authority under the Riksdag (parliament) with responsibility for monetary policy. Its objectives are to maintain price stability and to promote a [...]

The goal of monetary policy as conducted by the Bank of Japan is to contribute to the sound development of the national economy through the pursuit of price stability. The [...]

In 1979, Italy entered into the Exchange Rate Mechanism (ERM) as a founding member of the European Monetary System. After that date, the country's monetary policy was geared toward the [...]

Since the introduction of the national currency, the tenge, in 1993, Kazakhstan has adhered to a strict macroeconomic stabilisation programme, combining tight monetary discipline, stringent monetary policy and structural economic [...]

Monetary policy rules help central banks exercise the discipline necessary to achieve their long-term goals. The type of rule many banks are turning to these days is inflation targeting, which [...]

Monetary-policy making over the last 20 years has taken Chairman Mao's words to heart; policy has been revolutionised, with price stability as its central aim. And a consensus has emerged […]

The CBS will remain predominantly focused on seeking to shore up the Syrian pound. Faced with repeated runs on the pound, the central bank has increasingly taken direct steps, such [...]

The Suffolk Banking System was a system of clearing bank notes in place in New England from 1825 to 1858. It was managed by the Suffolk Bank of Boston. Far from being an exponent of the free enterprise where the government does not interfere with the workings of the industry, the Suffolk Banking System is actually a monopoly that enjoys profitability because it benefits from large economies of scale and government protection of its market share.

While downsizing was the rage in the first part of this decade, it is becoming increasingly clear that in the 21st century companies won't be able to cut their way [...]

The implementation of Working Capital Guarantee Program (WCGP) by the Export-Import Bank of America proves to be beneficial in promoting financial help to small and new exporters. The proven financial benefits that financial institutions can derived from joining WCGP, such as faster turnaround, results to greater participation of banks in providing financial help to exporters. Better utilization of the program will result if companies will undertake several measures such as appointment of managers that have competency in domestic credit management.

Improvement in the Latin American banking industry is attributed to regional consolidation, privatization and internationalization policies. Two giant bank mergers were made in Chile, while Peru's privatization and financial liberalization freed the country's Banco de Credito, thereby increasing loans by 9% and non-interest bearing deposits by 37 in the 1st qtr. from past quarter levels. Opening the Latin American banking industry to foreign banks produced more capital and fostered industrial competition., Consolidation, internationalisation and the withdrawal of government from banking are the key factors in the transformation of the Latin banks. Latin American banking is in the midst of a transformation [...]

Banks usually set an additional requirement to cap the sum of the receivables and inventory that serves as basis for loan amount. This is done to prevent enormous amounts of either receivables or inventory. Caps enhance the borrowing-base formula by assuring the quality of the financed assets. The traditional working capital credit line imposes a condition on a borrowing base.

In 1997 the last vestiges of restrictions on interstate banking and branching will fall. This change is due to the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, which [...]

Italy has transformed its monetary, economic and social regime. The 'Modus Operandi' of Italian monetary policy which relies on market-based control was radically changed in the '80s and '90s. However, changes still have to be initiated with relation to the banks' compulsory reserve deposits. The Bank of Italy must also be in step with European standards if it is to be an active participant of the future European System of Central Banks.

Savings institutions which are covered by the Federal Deposit Insurance Corp.'s Savings Assn. Insurance Fund have begun to look at alternatives in light of the anticipated disparity in deposit insurance premiums. Among those which have moved to prevent their SAIF premiums from rising are Great Western Financial Corp. and California Federal Bank of Los Angeles. They will turn their savings institutions into national banks whose deposits will be insured by the Bank Insurance Fund., SAVINGS INSTITUTIONS WHOSE deposits are insured by the Federal Deposit Insurance Corp.'s Savings Association Insurance Fund are beginning to review their strategic options regarding the expected deposit insurance premium disparity. [...]

While there is widespread agreement that banks play a key part in the transmission of monetary policy actions to the economy, debate continues on whether bank lending plays a special part in the monetary transmission mechanism. If a special lending or credit channel exists, changes in the willingness and ability of banks to extend credit may have implications for the economy. Moreover, ongoing changes in the role of banks in financial markets may affect the credit channel and so alter the monetary transmission mechanism. Recent research on a bank credit channel has focused on two questions. Are certain borrowers so dependent on bank lending that any change in banks' willingness to lend has an immediate effect on investment and spending decisions? And, do monetary policy changes directly constrain bank lending? Both conditions are necessary for bank lending to play a special role in the monetary transmission mechanism. Morris and Sellon provide insight into the second question - whether bank lending is constrained by monetary policy. The authors analyze how banks adjust the amount and terms of business lending when monetary policy is tightened. The analysis differs from previous research by using a more precise measure of monetary policy actions, which allows a more accurate identification of episodes of monetary tightening. The authors suggest that bank business lending is not constrained by restrictive monetary policy. Thus, Morris and Sellon conclude, monetary policy does not operate through a special credit channel.

The government of Ottawa, Ontario in the 1990s began consulting with the banking sector on the important issue of export financing. While the government took sole responsibility for export financing earlier, much to the displeasure of banks which considered the policy as constituting unfair competition, there has been a willingness to open up the area to institutions that could help shoulder the risks involved. A cooperative venture is foreseen., Recent moves by Ottawa to help small businesses grow through exports are opening up opportunities for the banks and signalling a change in their relationship with the EDC. The business [...]

Hispanic business loans declined 37% from 1988 and 1993; however, 94% of commercial banks intend to increase small business loans in 1994, and more banks are dealing with Hispanic customers. A number of banks are focusing on making small business loans their goal.

Good management techniques and occasion amounts of new capital have helped the leading 100 Hispanic business grow during 1994. Approximately 65% of these Hispanic firms find additional funding for growth from banks. About 32% of the firms find funds from internal financing.

A credit crunch occurs when the demand for credit is higher than its supply. When banks become undercapitalized, the national economy is threatened. This leaves creditworthy borrowers without access to profitable investments and business opportunities. Since larger banks are greatly affected by a credit crunch, training and knowledge should be transferred to smaller credit companies where the small business market provides promising returns. Policy makers should take the pressure off banks from taking risks just to satisfy regulatory inducements.