Reserve Bank of India

This role is achieved through the implantation of the monetary policies. According to Arnold (2008), Fed has several tools at it disposal that it uses in the monetary polices. These are; the open market operations which involve buying and selling U.S government securities in the financial markets. Further the bank is charged with the responsibility of determining the required reserve ratio. This ratio is given to the commercial banks dictating the minimum amounts that they should hold in to their accounts as deposits and for lending. Finally the Fed sets the discount rates putting in to consideration the overall market rates s well as desired effect on borrowing that the Fed seeks to achieve. In addition to these three major roles, as a bank, the Federal Reserve Bank can play the roles played by the commercial banks as the rules are not entirely prohibitive as far as this duty is concerned.

Further the substance in charge of supervising the money related framework for a country (or gathering of countries). National banks have an extensive variety of obligations, from managing financial approach to executing particular objectives, for example, cash steadiness, low expansion and full business. National banks additionally by and large issue money, capacity as the bank of the administration, control the credit framework, regulate business banks, oversee trade saves and go about as a loan specialist of final resort.

That is to say, the Federal Reserve's job is to maintain an accurate banking structure and a healthy economy. To fulfill its mission, the Federal Reserve presents itself as the financial institutions bank, the ministry's treasury, the director of monetary organizations and the nation's currency

The Federal Reserve Board is a regulating body that determines how United States will lend money by coordinating the banks and defining the value of the dollar. A Governor on the Federal Reserve board communicates with the twelve region 's bank presidents, economic analysts, and their regional directors, and collectively define the dollar by selling long-term and short-term bonds that advance a percentage of the worth. Once an agreement has been made upon fraction percentage, banks are required to maintain that stated amount in a Federal Reserve vault, or the bank’s vault. The Federal Reserve loans temporary funds to the banks that do not meet the reserve requirement in the form of a short term loan, usually overnight. A large amount of the Federal Reserve Board’s time is spent discussing fractions of a percent on specific money-related rates which steers the economy.

Supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system to protect the credit rights of consumers.

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

Reserve requirements also known as reserve deposits are funds that banks are required to place with the Federal Reserve. Reserves fall into two categories, required reserves which is a mandatory dollar amount mandated by law and additional reserves which the bank voluntarily places with the Fed. The excess reserves on deposit with the Fed earn a small amount of interest so it is usually kept to a minimum however; these funds can be lent to banks that currently

16. Regulatory forbearance refers to a policy of A) allowing insolvent banks to continue to operate. B) foreclosing real estate properties in the event on non-payments of mortgages. C) strict regulation of banks, closing them down as soon as they are insolvent. D) rescheduling of all loans of a client in the event of non-payment. E) both answers b and c. 17. Customer deposits are classified on the FI 's balance sheet as A) assets, because the FI uses deposit funds to earn profits. B) liabilities, because the FI

With that said the basic function of the FED relates primarily to the maintenance of monetary and credit conditions favorable to sound business activity in all fields; agricultural, industrial and commercial. Among this some duties include the following: lending to member banks, open market operations, establishing discount rates, fixing reserve requirements and issuing regulations concerning these and other functions. Each Federal Reserve Bank is best described as a Bankers Bank. In a nutshell, member banks use their reserve accounts with their reserve banks similar to the way we use our own checking account. They may deposit in the reserve accounts the checks on other banks and surplus currency received from their customers, and they may withdrawal on the reserve. Thus a bank with excess in the reserve requirements can enlarge its extension of credit (loans). However, let's not forget that the Fed has the

A Central Bank is a supreme bank in a country which supervises all the economic life of the nation. As the definition states “Autonomous or semi-autonomous organization entrusted by a government to, administer certain key monetary functions”, these banks have a wide range of activities, such as; implementing specific goals such as currency stability, low inflation rates and full employment. Central banks acts as the banker of the government helping in regulating monetary and financial stability, and developing stable payment system. The first central bank was found in the world was the Swedish Riksbank, founded in 1668. Second bank was Bank of England found in 1964, by William Paterson to finance a war. They became a vital part of the world today.

The Reserve Bank Of Australia (RBA) is the executive of targeted monetary policy, one of two macroeconomic weapons used to stabalise the economy. The RBA has two main responsibilities as the central bank of Australia. First is monitoring and controlling monetary policy to achieve full employment, target inflation and influence aggregate demand. Secondly, the RBA is in charge of the oversight and regulation of the financial markets and promotes the efficiency of the nations payments system (Bernanke, Olekalns & Frank. 2014).

The Government took over note issuance from the private banks in 1910 and transferred that responsibility to the Commonwealth Bank in 1924 (the function was managed by the Australian Treasury in the interim period). Increasingly, the Commonwealth Bank became banker to governments.

The National Banking Act; The Act permits 1) national banks 2) to operate with explicit power to regulate the issuance of credit or debit cards as well as implied power “necessary to carry on the business of banking” including the offering of “electronic stored value systems.”

• Governance and oversight: Assessing business model and strategy changes and reinforcing the importance of sound corporate governance appropriate for the size and complexity of the individual bank. A specific focus will be on determining the adequacy of strategic, capital, and succession planning. Examiners will assess whether the plan is appropriate in light of the risks in new products or services. If applicable, examiners will assess the bank’s merger and acquisition processes and procedures.

The reserve bank of India (RBI) kick started in April 1935, its aim being to regulate the Indian currency (rupee), it is the central bank in India thus controls and regulates all financial institution including the None Banking Financial Companies (NBFC).