Costly Banknote Issuance and Interest Rates Under the National Banking System

The world economy strives for globalization, and most energy assets are connected with each other through correspondent banks and other mutual operations. The relevance of the topic of the thesis is due to the fact that in September 2019 a number of proposals were made to introduce the practice of negative interest rates in the national banking system due to the fact that Russian energy assets are not profitable to place in foreign currency..

Interest rates under the U.S. national banking system

Journal of Monetary Economics ◽

10.1016/0304-3932(94)90023-x ◽

1994 ◽

Vol 34 (3) ◽

pp. 343-358 ◽

Cited By ~ 5

Author(s):

Bruce Champ ◽

Neil Wallace ◽

Warren E. Weber

Keyword(s):

Interest Rates ◽

Banking System ◽

National Banking System ◽

The U.S

Comment on Redemption Costs and Interest Rates under the U.S. National Banking System

Journal of money credit and banking ◽

10.2307/2601075 ◽

1999 ◽

Vol 31 (3) ◽

pp. 590 ◽

Cited By ~ 1

Author(s):

Jeffrey M. Lacker

Keyword(s):

Interest Rates ◽

Banking System ◽

National Banking System ◽

The U.S

Comment on Redemption Costs and Interest Rates under the U.S. National Banking System

Journal of money credit and banking ◽

10.2307/2601076 ◽

1999 ◽

Vol 31 (3) ◽

pp. 593 ◽

Cited By ~ 1

Author(s):

Angela Redish

Keyword(s):

Interest Rates ◽

Banking System ◽

National Banking System ◽

The U.S

Redemption Costs and Interest Rates under the U.S. National Banking System

Journal of money credit and banking ◽

10.2307/2601074 ◽

1999 ◽

Vol 31 (3) ◽

pp. 568 ◽

Cited By ~ 8

Author(s):

Bruce Champ ◽

Scott Freeman ◽

Warren E. Weber

Keyword(s):

Interest Rates ◽

Banking System ◽

National Banking System ◽

The U.S

Arah Kebijakan Pengawasan terhadap Perbankan Syariah dalam Sistem Perbankan Nasional di Indonesia

Volksgeist Jurnal Ilmu Hukum dan Konstitusi ◽

10.24090/volksgeist.v3i1.3498 ◽

2020 ◽

Vol 3 (1) ◽

pp. 41-52

Author(s):

Andrew Shandy Utama

Keyword(s):

Central Bank ◽

Financial Services ◽

Banking System ◽

Islamic Banking ◽

Legal Research ◽

Islamic Bank ◽

Independent Direction ◽

National Banking System

This research aims to explain the direction of policy regarding supervision of Islamic banking in the banking system in Indonesia. The method used in this research is normative legal research using the statutory approach. The results of this research explain that the policy regarding supervision of Islamic banking in the national banking system in Indonesia is headed toward an independent direction. In Law Number 7 of 1992 and Law Number 10 of 1998, it is stated that supervision of Islamic banking is done by Bank Indonesia as the central bank. Based on Law Number 21 of 2008, supervision of Islamic banking is strengthened by not only being supervised by Bank Indonesia, but also by the National Sharia Council of the Majelis Ulama Indonesia by placing Sharia Supervisory Councils in each Islamic bank. After the ratification of Law Number 21 of 2011, supervision of Islamic banking moved from Bank Indonesia to an independent institution called the Financial Services Authority.

A Look Back at the National Banking System and Its Relevance for Today

SSRN Electronic Journal ◽

10.2139/ssrn.2414010 ◽

2014 ◽

Author(s):

Ronnie J. Phillips

Keyword(s):

Banking System ◽

Look Back ◽

National Banking System

DOLARIZATION OF THE FINANCIAL MARKET OF UKRAINE: CAUSES, EVOLUTION, CONSEQUENCES

Scientific Notes of Ostroh Academy National University Series Economics ◽

10.25264/2311-5149-2021-21(49)-56-66 ◽

2021 ◽

Vol 1 (21(49)) ◽

pp. 56-66

Author(s):

Ihor Krupka

Keyword(s):

Interest Rates ◽

Financial Market ◽

Foreign Currency ◽

Banking System ◽

Market Potential ◽

National Currency ◽

Foreign Banks ◽

Stable Operation ◽

Negative Consequences ◽

International Financial Market

The purpose of the article is to assess the level of domestic financial market dollarization, find out the causes of this economic phenomenon, trace its evolution and identify current features, substantiate proposals to minimize the negative consequences for the financial market and the economy in general. The methods of theoretical analysis, synthesis and generalization, analysis of statistical data and its graphical interpretation are used in the research. The results of the research showed that the main reasons for dollarization in Ukraine were high inflation and sharp fluctuations in the exchange rate of the national currency. In general, the dollarization of national financial markets occurs through the following channels: 1) borrowing on the international financial market; 2) the entrance of foreign banks to a domestic market; 3) investing abroad, when a national financial market is not sufficiently developed to create high-quality and highly liquid assets, dollarization provides rapid access to foreign financial assets and optimization of the profitability and risk structure of an investment portfolio; 4) the difference (spread) between interest rates in national and foreign currency. Based on the study of the domestic financial market, the following conclusions are made: 1) the level of Ukraine`s financial market dollarization in the aggregate and in terms of its separate segments is high; 2) this level poses a threat to the stable operation of financial intermediaries and the banking system in case of the national currency devaluation; 3) currency imbalance of assets and liabilities in the banking system has strongly decreased since 2008, but is still significant; 4) foreign currency is widely used by economic agents in the shadow sector of the economy. We consider the current dollarization level dangerous for the development of the country's financial system, and its reduction to a scientifically sound natural level should become one of the main tasks of the National Bank of Ukraine. Achieving the natural dollarization level and effective use of the domestic financial market potential will allow to intensify Ukraine's national economy development and promote integration into the international financial market and the global financial space.

Money creation under full-reserve banking: a stock–flow consistent model

Cambridge Journal of Economics ◽

10.1093/cje/bey034 ◽

2018 ◽

Vol 43 (5) ◽

pp. 1219-1249 ◽

Cited By ~ 2

Author(s):

Patrizio Lainà

Keyword(s):

Interest Rates ◽

Government Spending ◽

Banking System ◽

Large Change ◽

Real Economy ◽

Consistent Model ◽

Safety Margins ◽

Money Creation ◽

Reserve Banking ◽

Stock Flow

Abstract This paper presents a stock–flow consistent model of full-reserve banking. The paper investigates money creation through government spending in a full-reserve banking system. The results are contrasted against the cases in which government spending is increased under full-reserve banking without money creation and under endogenous money, that is, the current monetary system. It is found that output, employment and inflation evolve almost identically. In contrast to other cases, money creation in a full-reserve banking system leads to a permanent reduction in consolidated government debt. Monetary policy transmits effectively as an increase in central bank reserves translates into an almost equal increase in demand deposits. Furthermore, an unusually large change in the money supply induces only smooth and relatively small changes in interest rates. In addition, the paper compares three additional ways to create money. Money creation through tax cuts or citizen’s dividend generates roughly the same results as creating money through government spending. In contrast, money creation through quantitative easing affects only monetary aggregates and interest rates but not the real economy. Although in every money creation experiment banks are able to fully satisfy the demand for loans, temporary credit crunches can occur under full-reserve banking. The occurrence of credit crunches depends on changes in private behaviour and economic policy as well as safety margins adopted by banks.