FINANCIAL MARKETS AND INSTITUITONS

CENTRAL BANKS
OF THE WORLD
PRESENTED BY:
Divya Rao – 34
Kalpesh Vetkar – 51
Karishma Jethwani – 52
Kavita Naik – 55
Sanmay Tribhuvan – 90
CENTRAL BANKS:

⌂ Federal Reserve System

⌂ Bank of England

⌂ European Central Bank

⌂ People’s Bank of China

⌂ Bank of Japan
FEDERAL RESERVE SYSTEM
• It is the central banking system of the United States of America.

• Founded: December 23, 1913

• Headquarter: Washington, D.C.

• Chairman: Jerome Powell

• It is the primary regulator of banks that are members of the Federal Reserve System.
• The Fed is a major force in the economy and banking.
STRUCTURE:
 conducts the nation's monetary policy 

promotes the stability of the financial

5 Key Functions

system 

promotes the safety and soundness of

individual financial institutions 

fosters payment and settlement system

safety and efficiency 

promotes consumer protection and

community development
 BANK OF ENGLAND
• The Bank of England is the central bank of the United Kingdom.
• Established : 27 July 1694
• Headquarter : Threadneedle Street, London
• Governor : Mark Carney (since 2013)

• BOE is the world's eighth-oldest bank.

• The Bank is one of eight banks authorized to issue banknotes in the United Kingdom, has a
monopoly on the issue of banknotes in England and Wales.
STRUCTURE:

Bank of England

Asset Purchase Monetary Policy

Facility Court of Directors Committee
QUANTITATIVE EASING
Purchases of government bonds over the
years:

Year £ (In billions)

November 2009 £200

July 2012 £375

August 2016 £435

EUROPEAN CENTRAL BANK
• It is the central banking system of the Entire Eurozone.
• Founded: June 1, 1998
• Headquarter: Frankfurt, Germany
• President: Mario Draghi

• It is one of the seven institutions of the European Union.

• It supervises over 120 central and commercial banks in the member states.
• It formulate monetary policy and maintains price stability and strengthen euro.
STRUCTURE:

Governing Executive General Supervisory

Council Board Council Board

Formulation of Fixing exchange Responsible for

Manage day-to-
monetary rates of supervisory
day business
policies currencies function

President, Vice-
6 members of President, Vice- Chair, Vice-Chair,
President and 4
the Executive President and 4 ECB
other executive
board & Governs Governs representatives
members
 Maintain price stability and
safeguard the value of the Euro

Monopoly on the issue of bank

notes
Key Functions

Banking supervision in all the EU

member states

Fosters safety of payment systems 

Managing the foreign currency

reserves
People’s Bank of China
• The People's Bank of China is the central bank of the People's
Republic of China
• Established : 1st Dec, 1948
• Headquarter : Beijing
• Governor : Yi Gang (since 2018)

The PBOC is currently the largest central bank with close to $3.7 trillion
in foreign exchange reserves in 2017
Public companies in China are funded by the PBOC
STRUCTURE:
The internal structure is composed of the governors and deputy governors.
The governor responsibility is to supervise the overall work of the PBC while the deputy
governors provide assistance to their governor to fulfill its responsibilities.

The PBOC is composed of 18 departments:

MAIN FUNCTIONS OF PEOPLE’S BANK OF CHINA

Formulating and implementing monetary policy

Regulating financial markets

Managing payments and settlements systems

Thank you.