Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Merits and demerits of central bank
Outsourcing practices
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Merits and demerits of central bank
1. Roles of Central Banks
Central Bank, which regulates all the banks in the country, has the power to dictate banks to avoid undertaking risky activities such as outsourcing. That’s because when outsourcing, both sides’ vulnerable points go together bearing the same risk for two companies. Even the side strong and free of risk can fail in secureness, as it will share its information with its partner company that might be less trusty and secure.
In order to maintain the security of the customer’s information and to mitigate the future unexpected risks the Central Banks almost in every country have to inspect the third party’s information security program. Determine whether the third party (Fuji Xerox) has sufficient experience in assessing, identifying and emerging vulnerabilities and threats. Moreover, when technology is essential for maintenance of service delivery, assess the third party’s application security programs and infrastructure, containing the software growth life cycle and results of vulnerability and penetration tests. Estimate the third party’s ability to implement effective and sustainable corrective actions to address deficiencies observed during testing. Which these actions in the following case with Standard Chartered Bank and Fuji Xerox were not performed well and as the consequence there was occurred illegal accessing of Bank’s 647 client’s private statements by hacking with the help of one of the servers of the Fuji Xerox’s IT Company.
In addition, use of third parties reduces management’s direct control of activities and may introduce new or augment existing risks, particularly, reputation, compliance, strategic, operational, as well as credit risks and the interrelationship of all mentioned above risk...
... middle of paper ...
... at the same time fragile asset.
Reference:
Technical Committee of the International Organization of Securities Commission. (February 2005). Principles on Outsourcing. Available: http://www.cmvm.pt/en/Pages/default.aspx. [Accessed: 5th March 2014.]
Risk management Guidance. [Online] Available at: http://www.occ.gov/news-issuances/bulletins/2013/bulletin-2013-29.html[Accessed 7 March 2014]
Fighting economic crime in the Financial Services sector. [Online] Available at: http://www.pwc.com/et_EE/EE/publications/assets/pub/fighting-economic-crime-in-the-financial-services-sector.pdf [Accessed 7 March 2014]
The cost of cyber crime. [Online] Available at: http://www.iwar.org.uk/ecoespionage/resources/cost-of-cybercrime/full-report.pdf [Accessed 9 March 2014]
Timothy W. Koch, S. Scott MacDonald, Bank management, 2011, Dryden Press [Accessed 1 March 2014]
The Central Bank in the world today is a key part in the role of an economy to operate efficiently and effectively. Central banks began operating in the United States in 1914. The Central Bank is commonly referred to as “The Fed.,” which performs various functions that have developed over the years. These functions play a huge importance in the operation of our economy. The Central Bank The central bank is a financial institution that organizes the government’s finances, controls money and credit
The Bank of Canada is Canada’s central bank, whose current Governor is Mike Carney. It was founded in 1934 by the Bank of Canada Act of the same year. The country’s banking system was quite stable even before the Bank of Canada was established, mainly thanks to its branch banking structure, and showed little interest in central banking in the early 1900s. In addition, the banking system was somewhat being regulated by the Canadians Bankers’ Association. However, as the Great Depression took Canada
Central Banks have served as governments' personal banks since their creation, beginning with Sweden's Riksbank in 1668. However, as central banks have developed in the modern world, their goals as well as their tools have also evolved. When the Federal Reserve was created as the United States’ central bank in 1913, its purpose was simply to promote economic stability after the economic crisis of 1907. Then, when the European Central Bank, or the ECB, was created in 1998, their main purpose was to
and regulating banks and other important financial institutions to ensure safety, maintaining the stability of the financial systems, and providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions, and playing a major role in operating and overseeing the nation's payments systems. The Federal Reserve Chairman, known formally as the Chair of the Board of Governors of the Federal Reserve System, is the head of the central banking system
learned in this course were about money & financial system itself, the institutions that fuel the system and the Central Banks. Let’s start with what money is and what it does. Money is “anything that is generally accepted in payment for goods and services.” (Mishkin, 2010) Money needs to have value to the people within a society in order to fill this role. One of the primary roles of money is to be used as payment for goods or services; it also reflects value or price levels and retains value
The Reserve Bank of India is the regulator as well as supervisor of the financial system of India. It is the function of the Reserve Bank of India to establish the parameters for functions related to bank, that govern the operations and performance of the banking and financial system in India. The Reserve Bank of India provides security to the depositors' which increases the public trust in the banking system
are monetary and fiscal policy and their roles and contribution to the economy. This includes the role of the government in regulating the economical performance of a country. It also explains the different features and tools of monetary and fiscal policy and their performance when applied to the third world countries with a huge informal sector. Monetary Policy Monetary policy is the mechanism of a country’s monetary authority (usually the central bank) taking up measures to regulate the supply
LANDMARK OF INDIAN E-PAYMENT SYSTEM-THE ALL NEW “RUPAY” Presented by Ameerul Hasan Siddiqui Asst. Professor at Matoshri Ushatai Jadhav Institute of Management Studies & Research Centre, Bhiwandi- India ameerul.hasan@gmail.com Abstract: The central bank of any country is the main driving force for the implementation and development of the national payment system. The Indian payments systems have undergone a volumetric and qualitative change after globalization. At present the payments in India
monetary policy bases. Definition of Monetary Policy Monetary policy consists of the actions of a central bank, currency board or other regulatory committee to control the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as modifying the interest rate, buying or selling government bonds, and changing the amount of money banks are required to keep in the vault. The Federal Reserve is in charge of monetary policy in the
Banking Systems Most countries have a central banking system and in the United States the central banking system is the Federal Reserve. The Federal Reserve is lead by a board of Governors, which consist of seven governors, appointed by the President and confirmed by the Senate. The Federal Reserve Act was signed into law in 1913. In the 1700’s, before the Federal Reserve Act was signed into law, The Bank of the United States was started by President George Washington to assist with the debt that
and discuss whether it has weekend the ability of central banks to control the dynamics of inflation. The ability of central banks to control the rates of inflation may be substantially complicated by the increased globalization of the goods markets, factor markets and the financial markets (Woodford, 2007). The ability of national banks to influence the dynamics of inflation through monetary policy may be undermined by globalization. The central bank’s primary goal is to maintain price stability
fifth-largest mortgage lender Northern Rock was rescued by emergency funding from the Bank of England. This made the Newcastle-based firm the highest profile UK victim of the global credit crunch that had been triggered by the sub-prime mortgage crisis in the US. The bank run on Northern Rock that followed was unprecedented in recent UK monetary history. The Overend Guerney crash of 1866 was the last recorded bank run in the UK, before Northern Rock lost over £2 billion, starting on the 14th of September
The vision of the food bank is “sharing food and bringing hope.” The goal of the food bank is to provide food for as many people in need as they can. On top of that, they would also like to end hunger problems as a whole. The central food bank is able to produce twelve meals for one dollar. They also do not charge agencies for the food they distribute. Last year they were able to distribute more than twenty eight million pounds of food in the central Missouri area. The food bank relies on various partnerships
precious value. However, gold investment dominates the risk because of several factors, and one of the most influencing factors is gold’s price fluctuation. There are three causes of the fluctuation of gold’s price, which are price mechanism, the central bank and emergency. The first cause of the fluctuation of gold’s price is price mechanism. Defined in economics term, price mechanism means the relationship between the price and demand and supply of both goods and also services. Actually, both buyers
Friedman wrote the essay “Should There Be An Independent Central Bank?” Since then, half a century has passed. Nowadays, many countries in the world have their independent central banks. But the discussion about whether central banks should be independent does not end. This paper will try to 1) provide the arguments on both pros and cons whether central banks should be independent; 2) provides evidence about the relationship between central bank independence and inflation in developed countries, developing