Law & Practice of Banking (Fin-4106)

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Group Name Arcane

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Welcome To Our Presentation

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Group members
SL. NO. 01 02 03 04 05 06
4/26/12 Name ID No.

Mohammad Fayez Uddin Mohammad Alamgir Hossain Md. Maruf Hasan Md. Rashel Miah Asma Akter Naznin Fatama

07882684 07882742 07882758 07882746 06651335 07882729

Topics
Central Banking thus remains an Art to be perfected by practice: A case Click to edit Master subtitle style study of Italy

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Objective of Our Study

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To understand Functions & Objectives of the bank of Italy. To understand the role of the central bank in the Italy. To understand the rules & regulations adopted by the central bank to control the monetary policy of the Italy.

To understand the various rules & regulations which are related to Bangladesh Banks.

Mohammad Fayez Uddin

Overview
Central Bank edit Master subtitle style Click to of Italy is of primeval origin. This study set out the bank that acts as the leader of the money market. It supervises, regulates and controls the functions of commercial banks and other financial institutions. It acts as the banker to the government. The Bank of Italy is the central arch of the monetary and fiscal framework in the home country of the Italy and its activities are essential for the proper functioning of the economy and indispensable for the fiscal operations of the government.
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Mohammad Fayez Uddin

Central banking Evolution

Mohammad Fayez 4/26/12 Uddin

What is a Central Bank

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A central bank is a bank which constitutes the apex of the monetary and banking structure of its country and which performs, as best as it can in the national economic interest.

Asma Akter ID: 06651335

Objectives of Central Banks (i) Tactical or macroeconomic objectives

(relating primarily to the domestic price level and the exchange rate); (ii) Long-term strategic objectives of financial sector development (including the development of an effective payments system and other forms of financial infrastructure); and (iii) Sectoral or microeconomic objectives (such as prudential supervision and deposit Asma Akter insurance). 4/26/12 ID: 06651335

Significant activities
Developmental

and Promotional Activities of

Central Banks.
Financial

Repression as a Consequence Of Developmental Activities. of Central Banks

Promotional Activities

Activities

of Central Banks in Practice Asma Akter 4/26/12

ID: 06651335

The Bank of Italy is the central bank of the Republic of Italy and part of the European System of Central Banks. The Bank of Italy
Headquarters Rome , Italy

Bank of Italy

Established

1893

Governoras

Ignazio Visco

Central bank of

Italy

Currency

Lira

ISO 4217 Code ITL Coins Freq:

Asma Akter 4/26/12 ID: 06651335 5, 10, 20, 50, 100, 200, 500,

Owner of the Bank of Italy

Name of the Banks Bank Intesa Sanpaolo S.P.A. Bank UniCredito Italiano S.P.A Bank Banco di Sicilia S.P.A. Insurance Assicurazioni Generali S.P.A. Bank Cassa di Risparmio in Bologna S.P.A. INPS ( This is the only public institution)
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Mohammad Alamgir Hossain, ID:

Proportion (%) 30.3 15.7 6.3 6.3 6.2 5.0

Dealings of the bank of Italy

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Mohammad Alamgir Hossain,

Monetary policy and liquidity management Functions

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Mohammad Alamgir Hossain,

CRR and SLR Rate of Bank of Italy

Year 2007 2008 2009 2010 2011
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CRR% 4.5 4.5 4.5 5 5

SLR% 21.5 21.5 21.5 22 22

Mohammad Alamgir Hossain, ID: ID: Mohammad Alamgir Hossain,-742

Foreign exchange operations may also be used to alter the composition of the Banks foreign currency reserves in order to achieve the best balance between risk and return.
Public debt securities

The Bank of Italy also helps to draft issuing policy, providing forecasts for coverage of the borrowing requirement through securities placements.
Collateral management

The Bank of Italy is responsible for the management of the collateral that Italian banks have to provide against the financing obtained by the Euro system, according to Article 18.1 of the ESCB Statute.Maruf Hasan Md.
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ID:07882758

Banking and Financial Supervision Area:

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Supervisory Regulations and Policies External Relations and General Affairs Banking Groups Supervision Department Specialized Intermediaries Supervision Economic Outlook and Monetary Policy Structural Economic Analysis Department International Economic Analysis and
Md. Maruf Hasan ID:07882758

Department

Department

Department

Department

Relations Department

Laws and Governance

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The Bank of Italys functional and governance arrangements are based on a variety of different legal sources: Community law, which regulates the activity of the provisions of banking and financial law concerning its supervisory powers.
The main legal sources concerning the Banks functions and organization are:
Md. Maruf Hasan ID:07882758

Functions & Objectives of Bangladesh Bank Bangladesh Bank, as the apex institution of banking sector in Bangladesh, is shouldering the responsibility of supervising the activities of commercial banks/Non-Bank Financial Institutions The following three major categories: a. Comprehensive/Regular/Traditional inspection.

1. Evaluation of assets giving emphasis on classification and provisioning; 2. Assessing capital requirement; 3. Verification of window-dressing relating to
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Md. Maruf Hasan ID:07882758

Monetary Policy

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1. Contractionary policy
-Increase interest rate to control money supply

2. Expansionary policy
-Decrease interest rate for available money circulation

Naznin Fatama ID:07882729

The major functional areas include :

Formulation and implementation of monetary and credit policies. Regulation and supervision of banks and non-bank financial institutions, promotion and development of domestic financial markets. Management of the country's international reserves. Issuance of currency notes. Regulation and supervision of the payment system. Acting as banker to the government . Money Laundering Prevention. Collection and furnishing of credit information.
Naznin Fatama Implementation of the Foreign exchange regulation Act. 4/26/12 ID:07882729

Managing a Deposit Insurance Scheme .

In case of Monetary policy operation: - longer-term refinancing operations, monthly liquidity-providing reverse transactions at with a three-month maturity; -fine-tuning operations, which are executed on an ad-hoc basis to manage unexpected fluctuations in liquidity or interest rates; they can be liquidityproviding or liquidity-absorbing; In case of Foreign exchange operation: It takes part in the daily videoconference between the major central banks to decide the indicative exchange rates between the Dollar and other currencies. In case of Interest rates operations: The minimum reserve earns interest at the average of the marginal allotment rate in the main refinancing operations during the maintenance period, weighted according to the number of calendar days.

Bangladesh Bank can take up few functions of 4/26/12 the bank of Italy. These are:

Naznin Fatama ID:07882729

In case of liquidity management Functions - Standing facilities; - Minimum reserves. Operations on behalf of the Ministry of Finance The mandate of the central bank in Bangladesh should include development of financial markets and financial infrastructure. Clearing house function: The integration of the government receipts and disbursements circuit with the interbank settlement circuit underlies the telemetric Clearing services, based on the Computerized System of Government Payments.
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Naznin Fatama ID:07882729

Findings Of The Study

Observing what a central bank actually does may be a The bank of Italy doing the functions with a vision to

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better guide to its role than its legislation control macroeconomic stability, relating to domestic inflation and the foreign exchange rate. longer term considerations of financial sector The bank of Italy has Financial intermediation to development. discourage by controlling interest rates and directing credit. The quasi-fiscal activities of the bank of Italy chip Central banks of Italy can support this process
Md. Rashel Mia ID:07882746

away at its independence.

Bangladesh Bank perform three major 4/26/12 categories functions: a. Comprehensive/Regular/Traditional inspection. b. Risk based or System inspection

and c. Special inspection/Surprise inspection.

Bangladesh Bank can take part in the daily videoconference between the major central banks to decide indicative ID:07882746
Md. Rashel Mia

Conclusion
From the above discussion we can say that The conventional and established tools should be applied only on a selective basis. Much more attention will have to be paid to the general economic policy. Central banks should find ways to influence such policies and obtain the necessary help for their being able to do so. There could be no precise rules and techniques in central banking. So, Central banking thus remains an art to be perfected by practice. Appropriate measures should be taken to infuse efficiency and effectiveness in financial intermediation and stability in the financial system, bearing in mind that such efficiency, effectiveness and stability are precondition to ensure availability of credit for all productive purposes.

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Md. Rashel Mia ID:07882746

Thanks for being with us

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