In America, central banking was introduced in 1913 with the establishment of the Federal Reserve System, based in Washington DC (Federal Reserve 10). Congress passed an Act that addressed the need for a central bank that ensures a stable, safe and flexible financial mechanism. The Federal Reserve provides oversight and regulatory functions over banks to protect clients, manages risk, implement monetary laws that boost the economy and offers services to government institutions (Federal Reserve 10).
Based in London, the Bank of England is the central bank of the United Kingdom and it manages the central accounts of the government (Bank of England Archive 4).It also allows borrowing during fluctuations in the financial sector and handles the Government Stocks (Bank of England Archive 4). It is also charged with issuing Back notes. Generally, it regulates the banking sector and is responsible for government banking.
Located in Moscow, the Central Bank of Russia is an independent body that can issue currency, actively get involved in creation of financial policies and promoting the Russian financial market (CBRF 2). Also, it is the last avenue for creditors in the region. The bank also manages international financial reserves (CBRF 2).
The Central Bank of the Republic of China is involved in monetary management, foreign exchange management, conducting financial inspection and issuance of currency (CBC). The bank carries out reviews on banking regulations as well as offering protection to creditors (CBC).
Clearly, the federal reserve systems in all the four countries have common functions; supervision of banking in smaller banks, creation of the monetary policies within the states and offering other financial services such as loan making, deposit taking and foreign exchange services to citizens.
Works Cited
Bank of England Archive. "The Bank Of England: History And Functions". Bank of England Archive 15.634 (1970): 1-20. Web. 16 Apr. 2016.
CBC. "Welcome To The Central Bank Of The Republic Of China (Taiwan)". Cbc.gov.tw. N.p., 2016. Web. 16 Apr. 2016.
CBRF.Central Bank Of The Russian Federation. Moscow: 1-179., 2002. Print.
Federal Reserve. "The Federal Reserve System: Purposes And Functions". (2005): 1-22. Web. 16 Apr. 2016.
