Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

This is for help in Milestone 2. I chose The Central Bank of Ireland for my foreign bank. You will find the rubric

/in /by

Lisa Paladino

Southern New Hampshire University

Final Project II

4/1/2017

The central Bank of Ireland

Ireland is an Island in North Atlantic. The central Bank of Ireland was founded in the year 1943 though the central Bank Act of 1943. At that time the bank did not acquire many of the characteristics of a central bank. For example, it was not given the custody of the cash reserves of the commercial banks and it had no statutory powers to restrict credit. Through the Central Bank Act of 1971, the bank became the banker of the government of Ireland. The Central Bank Act of 1971 saw the bank transition from a currency board to a fully functional central bank.

Financial structure the central Bank of Ireland

The central Bank of Ireland makes contributions to the wellbeing of Ireland by performing key statutory responsibilities. These include a wide range of activities such as price stability, financial stability, consumer protection, payment, settlement and currency systems operations and oversight. The functions of the central Bank of Ireland include issuing currency to maintain control on the volume currency and credit. 

The central Bank of Ireland is the banker to the government. The Bank Ireland government keeps all the cash balances in the current accounts with the Central Bank of Ireland. It also carries all the remittances and other operations for the government of Ireland. In addition, the central Bank gives loans to the government for short periods of time as necessary and manages the country’s public debt.

The central Bank of Ireland identifies the risks that face and threaten the financial system. Through this, the bank can alert financial institutions. The bank also keeps the national and European systems safe.

Federal Reserve

TheFederal Reserve is the central banking system in the US that was created in Dec 23, 1913 through the Federal Reserve Act. The functions of the Federal Reserve include addressing the banking panics – this entails responding to the financial crises that may come about due to instabilities and depressions. The Federal Reserve also acts as the central bank of the United States where the federal and state governments keep their deposits.

The Federal Reserve also works towards striking a balance between interest of the banks and the centralized responsibilities of the government. To do this, it supervises and regulates the banking institutions and works towards protecting the credit rights of consumers.

TheFederal Reservecomesup with monetary policies that are meant to regulate the monetary supply. Through these policies, the Federal Reserve can moderate the long-term interest rates. The monetary policies also help to stabilize prices by preventing inflation and deflation.

The Federal Reserve ensures that there is stability in the financial system. This is done by containing the systematic risks in the financial markets and working towards strengthening the U.S position in the world economy.

Process of financial intermediation

Financial intermediation refers to the process by which the banks take deposits from the depositors and lend them to borrowers. Both the Federal Reserve and the central Bank of Ireland play the role of financial mediation. The central Bank of Ireland acts as the main bank for many of the country’s banks. It also acts as the custodian of the federal reserves and is the lender of the last resort.The bank accepts deposits from other banks in Ireland. As the lender of the last resort, ifa bank in the country falls due to finances, it lends to them.

The Federal Reserve also provides financial services including depository services to other financial institutions such as the banks. The Federal Reserve also lends to other banks and responds to the liquidity needs of the financial institutions.

References

Home | Central Bank of Ireland. (2017). Centralbank.ie. Retrieved 31 March 2017, from https://www.centralbank.ie

The Fed – Home. (2017). Federalreserve.gov. Retrieved 1 April 2017, from https://www.federalreserve.gov

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"