Chương 2: Banking System

ThS Phạm Mạnh Cường

Outline
 Vai trò của Ngân hàng
 Vai trò luân chuyển tiền tệ
 Trao đổi ngoại hối (Foreign exchange)
 Hệ thống ngân hàng thế giới
Các ngân hàng tư nhân Các ngân hàng tư nhân Các ngân hàng tư nhân
& các tổ chức tín dụng & các tổ chức tín dụng & các tổ chức tín dụng

NHTW thuộc sở hữu hỗn hợp NHTW thuộc sở hữu chính phủ
NHTW thuộc sở hữu tư nhân
Bỉ Ngân hàng Pháp
Cục dự trữ liên bang Hoa Kỳ
Ngân hàng Nhật Bản Ngân hàng Anh

Quỹ tiền tệ quốc tế

Ngân hàng thanh toán quốc tế
(PUBLIC POLICY LENDER $300B)
(A BANK FOR 45 CENTRAL BANKS, $130B)
182 MEMBER COUNTRIES
BASEL, SWITZERLAND
WASHINGTON, DC

SOURCE: TRANSACTION.NET
Ngân hàng trung ương
 Tiền hợp pháp (tiền thật) được ban hành bởi các
ngân hàng trung ương có thẩm quyền
 Chính phủ sở hữu

 Sở hữu Tư nhân

 Sở hữu liên kết giữa Tư nhân và chính phủ

 Các ngân hàng khác không thể phát hành tiền

hợp pháp.
 Các ngân hàng khác phải duy trì tài khoản trong
ngân hàng trung ương.
 Các ngân hàng thực hiện giao dịch chuyển tiền
thực thông qua ngân hàng trung ương
Movement of Money
 World economic product ~$127T
 Time to circulate $30T ~ 6 days
 Money supply (U.S., July 31, 2001)
 M1 (spendable now; money for payments) $1.1T (liquid = cash +
non-interest deposits + travelers checks)
 M2 (M1+ short-term investments < $100K) $5.3T (M1 + time
deposits + money market funds)
 M3 (M2 + long-term investments) $7.7T (M2 + big deposits:
institutional money funds)
 Cash (U.S, July 31, 2001) $554B
 0.1% counterfeit (in the U.S., only 0.03% is counterfeit)
 Over 70% held outside the U.S. (but counted in M1 because it can
be spent in the U.S.)
The U.S. Money Supply
In billions on Currency 554
July 31, 2001 Non-bank travelers checks 9
Demand deposits 313
Other checkable deposits 260 .
M1 Total 1136
Savings 2087
Small time deposits <100K 1116 .
Retail money market funds 984
M2 Total 5323
Large time deposits >100K 812 .
Institutional money funds 986
Bank agreements 379
Eurodollars 197
M3 Total 7697

SOURCE: FEDERAL RESERVE

Function of Banks
 Central banks:
 Issue fiduciary money (both token and notational)

 All other (non-central) banks:

 Issue notational scriptural money (bank accounts)

 Not fiduciary (“real money”), not token

 Non-central banks
 Move notational money

 Accept deposits (loans from depositors)

 Loan deposits to others (borrowers)

 What is a Bank Account?
 Notational representation of a loan to the bank
from a depositor
 Once the depositor puts money in his account, it
becomes the bank’s money, not the depositor’s
 When the bank deposits its money in the central
bank, it becomes fiduciary (real) money
 The bank then owes the depositor real money
 Effect of deposit: bank ends up with more real
money
I HAVE $800. BANK HAS
I DEPOSIT BANK DEPOSITS $200
I HAVE BANK OWES $200 MORE
$200 IN THE IN CENTRAL BANK
$1000 ME $200 (MY MONEY NOW
BANK
“ACCOUNT”)
BANK’S ASSETS:
MY ASSETS:
MY ASSETS: +$200 REAL MONEY
$1000 CASH
$800 CASH - $200 DEBT
+$200 OWED BY BANK
Benefit of a Bank Deposit
 Bank can
 loan the money (more than was deposited!)

 invest the money

 move the money, e.g. make payments

 buy foreign currency with the money

 Payment Orders (Checks)
CHECK
NUMBER
MAKER (DRAWER) DATE

PAYEE
AMOUNT

CURRENCY

DRAWEE
BANK

DRAWEE BANK
ACCOUNT NUMBER AUTHORIZED
NUMBER
SIGNATURE OF
MAKER’S AGENT
THIS CHECK IS AN ORDER TO MELLON BANK TO
PAY $100 TO PAYEE OR HIS TRANSFEREE FROM
THE CARNEGIE MELLON UNIVERSITY ACCOUNT
Checks
 U.S. -- 63 billion checks per year, average $1100
 80% of noncash payments made by check
 “On-Us” (payor and payee in same bank -- 30%)
 Interbank (payor and payee in different banks) --
requires settlement
 Direct sends(Direct presentment)

 Correspondent banks

 Clearing house associations (150)

 Federal Reserve system (15 billion checks/year,

27%)
 Complex laws re bank liability in check processing
 Check Processing
“On-Us”

Check Check
Deposit
Ticket
Encode Sort/Balance Deposit
Ticket

BANK A’S
DEPOSITS

Clearing Check
Cash
House Letter

Check
“Clearing
Cash
House” Letter
OTHER BANKS
“Direct
Sends”

SOURCE: PNCBANK
BANK B
 Clearing Payment Orders (Check)

1. CMU SENDS CHECK TO SHAMOS

CUSTOMER CMU CUSTOMER SHAMOS
OF MELLON BANK “PAY SHAMOS $100” OF CITIBANK
9. MELLON SENDS 2. SHAMOS DEPOSITS
CHECK BACK TO CMU CHECK AT CITI

MELLON BANK 8. CLEARING HOUSE CITIBANK

SENDS CHECK TO
4. CITI SENDS CHECK
MELLON
TO CLEARING HOUSE
CUSTOMER A CUSTOMER A
CUSTOMER CMU -100 CLEARING HOUSE CUSTOMER B
... (FEDERAL RESERVE) ...
CUSTOMER Y SHAMOS +100
MELLON -100
CUSTOMER Z CUSTOMER Z
BANK A
7. MELLON 6. CLEARING ... 3. CITIBANK CREDITS
DEDUCTS HOUSE SENDS SHAMOS WITH $100
$100
BANK Z
MELLON
FROM CMU DEBIT INFO CITIBANK +100
ACCOUNT
5. CLEARING HOUSE ADDS $100 TO CITI,
SUBTRACTS $100 FROM MELLON
 Settling Payment Orders (Checks)
1. AT END OF DAY, EACH 2. BANKS WITH NEGATIVE
BANK HAS A NET POSITIVE
REAL-TIME GROSS BALANCES MUST PAY;
OR NEGATIVE CLEARING SETTLEMENT SYSTEM THOSE WITH POSITIVE
HOUSE BALANCE (FEDWIRE) BALANCES RECEIVE
MELLON +34,299,321 MONEY
BANK A
6. CLEARING HOUSE PAYS ... 4. CITI PAYS THE CLEARING
MELLON $34,299,321 HOUSE THROUGH RTGS
BANK Z
CITIBANK -107,071,775
MELLON BANK CLEARING CITIBANK
+107,071,775
HOUSE

CUSTOMER A -15085 CUSTOMER A +2786

CUSTOMER CMU +3167 CLEARING HOUSE CUSTOMER B -988713

... (FEDERAL RESERVE) ...
CUSTOMER Y +728103 SHAMOS +100
MELLON +34,299,321
CUSTOMER Z +35529 CUSTOMER Z -31872
BANK A
5. CLEARING HOUSE ADVISES ... 3. CLEARING HOUSE INFORMS
MELLON IT WILL BANK Z CITI IT MUST PAY $107,071,775
RECEIVE $34,299,321
CITIBANK -107,071,775
 Electronic Clearing
MAKER (DRAWER) DATE CHEQUE The paper cheque is just
NUMBER
PAYEE
a carrier of information.
AMOUNT
Electronic transmission is
CURRENCY
DRAWEE better.
BANK
AUTHORIZED
DRAWEE BANK SIGNATURE OF We dematerialize the cheque
DRAWER MAKER’S AGENT
NUMBER
ACCOUNT
(remove the paper).
NUMBER

06130018184310143700000000100000USD061200356425020010130
DRAWEE DRAWER CHECK AMOUNT CURRENCY PAYEE PAYEE DATE
BANK ACCOUNT NUMBER BANK ACCOUNT
NUMBER NUMBER NUMBER NUMBER

Only the information is sent to the clearing house

Foreign Exchange
 Currency = token fiduciary money of a central bank
 Every bank account is denominated in one currency
 Most banks allow accounts in only one currency
 All currencies have three-letter ISO currency codes:
 USD (U.S. dollar) JPY (Japan yen)
 GBP (Great Britain pound) CHF (Swiss franc)
 HKD (Hong Kong dollar)EUR (Euro)
 Usually, the first two letters indicate the country; third letter
is the first letter of the currency name
 Foreign exchange is a barter transaction
 To buy GBP for USD, buyer has to find someone with GBP
who wants USD
Foreign Exchange
 Every bank must have an account at the central
bank (or with another bank that has one)
 The account is (usually) denominated in that
country’s currency and is used to settle
obligations in that currency
 A foreign exchange transaction requires two
settlements, one in each currency
 Therefore, two countries’ central banks are
involved
Foreign Exchange Example
 Bank B (buyer) in the U.S. buys 1 million GBP for
1.44 million USD from Bank S (seller) in the UK
 Bank B must have an account denominated in
GBP somewhere, probably at Bank C in the UK
 Bank S must have an account denominated in
USD somewhere, probably at Bank T in the US
Foreign Exchange Example
BANK T (US)
US BANKS (NOSTRO ACCOUNT)
BANK S (UK)
BANK S WILLING TO SELL
BANK B (US) USD ACCOUNT BANK C (UK) 1 MILLION GBP
WANTS TO BUY FOR USD
1 MILLION GBP (NOSTRO ACCOUNT) BANK B
FOR USD GBP ACCOUNT
UK BANKS

US FEDERAL THE BANK

RESERVE BANK OF ENGLAND
BANK B USD ACCOUNT BANK S GBP ACCOUNT
BANK T USD ACCOUNT BANK C GBP ACCOUNT

SETTLEMENT ONE: SETTLEMENT TWO:

BANK B TRANSFERS BANK S TRANSFERS
1.44 MILLION USD TO 1 MILLION GBP TO BANK
BANK T BY FEDWIRE C BY CHAPS (BOE RTGS)

SELLER S NOW HAS 1.44 BUYER B NOW HAS 1

MILLION USD IN BANK T MILLION GBP IN BANK C
The Euro – A Basket Currency
 Single currency for 11 European countries
 Issued by the European Central Bank (ECB)
 1 euro (EUR) =
 1.95583 DEM (German deutschmark)
 6.55957 FRF (French franc)
 1936.27 ITL (Italian lira)
 166.386 ESP (Spanish peseta)
 2.29371 NLG (Netherlands guilder)
 40.3399 BEF (Belgian franc)
 13.7603 ATS (Austrian schilling)
 200.482 PTE (Portuguese escudo)
 5.94573 FIM (Finnish markka)
 0.787564 IEP (Irish punt)
 40.3399 LUF (Luxembourg franc)
Q&A