Non-cash issuance of central bank balance sheets

Active Passive 1. (Debit loan accounts of commercial banks) Issuance of emission credit the loan account of the commercial bank of 1-P. (Credit correspondent accounts of commercial banks) increase in the amount of emission credit balance on correspondent accounts of commercial banks (on the balance sheet of commercial banks - operation 2-A) 2-A. (Debit correspondent accounts of commercial banks) increase in the amount of emission credit balance on correspondent accounts of commercial banks (by the central bank's balance sheet - 1-P) 2. (Credit Loan Account received) Allowance for loan accounts of the emission credits obtained from the central bank's 3.1. (Debit loan accounts client) Issuance of credit to another bank or company to loan accounts from the issuing credit. 3.2. (Credit correspondent accounts of commercial banks) decrease in the amount of the loan balance on correspondent accounts of commercial banks in lending to another bank or, if the company has no current or deposit and checking account at the bank after these operations occur, for example, payment documents by the client company obtained a loan from the located on the bank's correspondent account (with the amount of emission credits of the central bank). Cheque deposit-emission can be theoretically done one commercial bank, if the resulting emission from the central bank's loan will not exceed the limits of the bank and its branches, and will be used in the calculations between its customers. Then the bank can issue more loans to their customers, thereby creating the appropriate deposits, each in an amount close to the emission of the loan. Issue of money has also leveraged nature. For example, some or all of the emission credit commercial bank receives the cash. Then the following occurs: (Appendix A, B). Institutions of National Bank of Ukraine shall take timely action to replenish the cash reserves and export of surplus cash and cash dilapidated [27]. In the issue of money is moving money from reserves in the back desk of the Central Bank of Ukraine in connection with an emission permit. Then when you move the central bank issuing the credit and secondary emissions of commercial banks through the circulation of money, especially between bank lending, there is an expansion of money supply in accordance with the multiplier. The money multiplier is calculated as simply the ratio of average money supply (M2 more) to the average of the monetary base over the period, also called the multiplier of the monetary base. Topic: The mechanism of emission | Tags: Non-cash issue