In 1920, an international financial conference in Brussels

In 1920, an international financial conference in Brussels noted that" in countries where There is no central bank of issue, create it. "Ibid stated:" The banks and issuing banks in particular should be freed from political pressure, they must be managed on the principles of intelligent finance. " Thus, the question of independence of the Central Bank in mind. This independence ensures its effectiveness. Historically, the Central Bank is usually formed as a joint stock company, endowed with special powers. The term "central bank" refers to the largest bank, located in the heart of the banking system. Then, the Central Bank gradually monopolized certain specific functions, and at some point the authorities nationalized Bank (stock status could be kept at the same time, such as the Bank of Italy or the National Bank of Austria). In most cases, the capital of the Central Bank is fully owned by the government, but shareholders may be commercial banks and other financial institutions. CB compared with the commercial banks were modest in scale of capital, operations and balance sheets, their functions and methods of influence on the banking system were modified. At the same time, their nature has not changed in principle and is to mediate between the state and the economy in the latter? Regulating the flow of credit. Most often, the Central Bank is accountable to Parliament (or a special parliamentary commission.) Head of the Central Bank is not included in the government, and his appointment does not synchronize with the formation of a new cabinet. The appointment may be made by the monarch, president, parliament, the government, based on a parliamentary majority, has the right to his candidacy (typically offers officially). Senior management of the Central Bank may not be limited to tenure (Denmark, Finland, Norway) or administered long term, such as 7 years old - in Ireland, Australia, Canada, Netherlands, 8 years - in Germany. Category: Klasifikatsiya real estate market