They would only majorly borrow traits from systems like that of the EU central Banking system. Formulation of the likely structure is therefore of fundamental and of primary concern and ensuring that the structure is the most suitable and applicable is paramount. Proper systems would ensure that the costs of banking within the region are highly regulated and that tight controls are ensured of money and money operations. Introduction Our main task in this assignment is to discuss the likely structure of the suggested GCC Central Bank. We are also required to its similarity and differences with the European Central Bank. Furthermore, we have to find the arguments supporting and those against such a system and most importantly the objectives of the system. The GCC central bank has the main aim of bringing together the operations of the 5 central banks within the U.A.E in a regulatory manner. It would therefore be modeled in a closed system of financial accounts; this means that the equilibrium volume of banks intermediation between the households and corporate would show structural measures like preferences to households, cost structures, loan demand by corporate (Cobham & Dibeh 2011). Inclusive in the structure would be the integration of the differences in borrowing and deposit rates of the central banks of the five countries (Grauwe & Dewachter 1999). The structure also is inclusive of the width of the central bank standing facilities corridor as well as the stance of the monetary policy. This is to enable the system be in the position of cushioning the U.A.E against any form of financial crisis (Rajan & Zingales 1998). The banking systems of the GCC countries is mostly dominated by a very small number of both domestic and foreign commercial banks making any dealing involving finances to be quite of an uphill task. This system is designed in manner to help provide better and more information to enhance decision making hence enhance the efficiency of the U.A.E economy in terms of resource allocation hence general improvement of welfare (Hamori & Hamori 2010). It has a monetary policy unit mandated with the task of designing monetary policy for the promotion of price stability, sustainable economic growth and a stable financial system within the UAE. Policies established have the impact of reducing by a wider margin a level of uncertainty and the established monetary policy unit is expected to reduce the noise because of policy makers in an economic environment (Levine & Renelt 1992). The proposed GCC central bank is formulated by an act prepared by the 5 member countries. This is due to the desire of the countries to form one central bank body for the sake of uniformity in the monetary and fiscal policies governing their financial systems. The Acts confers the GCC central bank with the responsibilities of formulating monetary policy, ensuring price stability, issuing a common currency and performing any other functions conferred to it by the Act (Rajan & Zingales 1998). It has a central head office with branches located in each of the countries that have come together to form this form of financial organization. The system will also run currency centers in specified locations within the UAE region. The suggested arrangement will have assistant governors to support the activities and decisions by a central governor (Smits 1997). The directors will still be there with the governor at the head office to help in the daily
Date Executive Summary Gulf Council Countries (GCC) Central Bank Brings together Central Banks of Bahrain, Kuwait, Oman, Qatar and the Saudi Arabian Monetary agency under one platform in more sophisticated system to help in handling their banking needs in the U.A.E zone…
Central banks conducts monetary policy through regulating money supply and interest rates. The main objectives of the monetary policies of the central bank are to keep inflation under control and unemployment rate low with a view to stimulate economic growth. The autonomy of central banks insulates their operations from political intervention.
Generally it looks after the policy formulation process and how it concentrates on the growth strategies which will drive the GCC countries on the path of progress. Introduction Gulf of Cooperation Council (GCC) countries have many things in common. All of the GCC countries are major oil exporters and they have fixed exchange rate regimes which exposes them to the risk of international oil prices.
This paper analyses the structure of the proposed central bank for GCC, its objectives and functions as well as why the implementation has been retarded. Introduction Economic structures of countries in the GCC region are similar as most of them have their GDP majorly influenced by natural minerals and more so hydrocarbon sectors.
The formation of the Central Bank includes a study of the probable form or structure of the Central Bank in GCC. The operations of the Central Bank in GCC have been compared to the operations of the European Central bank based in Frankfurt, Germany. The arguments in favour and opposing the formation of the Central Bank have been provided in this piece of work.
Basically, like any other banks and companies, it started from scratch and with nearly 300 years of banking experience, one cannot help but to wonder, why is it that this bank has become a force to reckon with in terms of banking prowess since majority of the banks in the UK are using the same banking format, offering the same interest rate With this, one could have the idea that there is a special ingredient or formula which the Bank imposes in which the customers have this sense of satisfaction that is why they keep on coming back to once again avail the services that this bank offers.
It differs from other banks since most of its borrowers are women and Grameen bank’s web said that it has a 100% recovery from them. As of October 2011, the bank has 8.449 million borrowers with 2.565 branches in Bangladesh.(Introduction) . The bank said that
The two will see the formulation of financial policies in the region that will help deal with the issue of inflation and interest rates. This is bound to give the oil rich region more control over their economy and balance trade within
cts including its structure, similarities or differences from the European Central Bank and arguments along with counter-arguments against GCC Central Bank will be duly considered for discussion in this assignment.
In relation to the above context, it can be apparently observed
Hunger issues have been bedeviling Americans since the year 2008 when the recession kicked in. Eight years later the issue is still to be addressed thou statistics indicates that the number of people faced
4 pages (1000 words)Assignment
Hire a pro to write a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you an essay for FREE
Contact us via Live Chat, call us at +16312120006or send an email to email@example.com