Isms Project

PART 1

Great Britain

o Central bank of the UK

o Founded in 1694

o Gained independence in 1997

o Govt's banker and the Banker's Banker

o Has 2 purposes - monetary stability and financial stability

o Sets the UK's interest rates

Switzerland

o The Swiss National Bank conducts the country's monetary policy as an independent central bank. It is obliged by Constitution and statute to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability, while taking due account of economic developments. In so doing, it creates an appropriate environment for economic growth.

o Price stability is an important condition for growth and prosperity. Inflation and deflation are inhibiting factors for the decisions of consumers and producers; they disrupt economic activity and put the economically weak at a disadvantage. The National Bank equates price stability with a rise in the national consumer price index of less than 2% per annum. Monetary policy decisions are made on the basis of an inflation forecast and implemented by steering the three-month Libor.

o The National Bank is entrusted with the note-issuing privilege. It supplies the economy with banknotes that meet high standards with respect to quality and security. It is also charged by the Confederation with the task of coin distribution.

o in the field of cashless payment transactions, the National Bank provides services for high-value payments between banks. These are settled in the Swiss Interbank Clearing (SIC) system via sight deposit accounts held with the SNB.

o The National Bank manages international reserves (gold, foreign exchange, international payment instruments). They ensure confidence in the Swiss franc, help to prevent and overcome crises and may be utilised for interventions in the foreign exchange market.

o Within the framework of its task to ensure the stability of the financial system, the National Bank analyses account sources of risk emanating from the financial system. It oversees the systemically important payment and securities settlement systems and helps to shape the operating framework for the financial sector.

Supervision of Switzerland's banking sector is the responsibility of the Swiss Federal Banking Commission

o The National Bank compiles various statistical data, notably banking statistics and the balance of payments.

o The National Bank acts as banker to the Confederation and, together with the federal authorities, participates in international monetary cooperation.

Cuba

* To issue the national currency and seek for its stability.

* To contribute to the macroeconomic balance and orderly development of the economy.

* To keep custody of the country's international reserves.

* To propose and implement a monetary policy which allows to attain the economic goals established by the country.

* To ensure normal internal and external payment operations.

* To dictate mandatory regulations.

* To exercise the functions related to the discipline and supervision of the financial institutions and representative offices authorised to establish themselves in the country and of any other entrusted to it by the laws.

PART 2

1. Who is the Fed Board of Governor's Chairman?

Ben S. Bernanke

2. What is the length of the term of the Chairman?

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