INDIA

a) The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share
capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was
divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the begining. The
Government held shares of nominal value of Rs. 2,20,000.

Reserve Bank of India was nationalised in the year 1949. The general superintendence and direction of the Bank is
entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government
official from the Ministry of Finance, ten nominated Directors by the Government to give representation to
important elements in the economic life of the country, and four nominated Directors by the Central Government to
represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards
consist of five members each Central Government appointed for a term of four years to represent territorial and
economic interests and the interests of co-operative and indigenous banks.

The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the
statutory basis of the functioning of the Bank.

The Bank was constituted for the need of following:

 To regulate the issue of banknotes

 To maintain reserves with a view to securing monetary stability and
 To operate the credit and currency system of the country to its advantage.

Functions of Reserve Bank of India 

The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the Reserve Bank of
India. 

Bank of Issue

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all
denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by
the Reserve Bank as agent of the Government. The Reserve Bank has a separate Issue Department which is
entrusted with the issue of currency notes. The assets and liabilities of the Issue Department are kept separate from
those of the Banking Department. Originally, the assets of the Issue Department were to consist of not less than two-
fifths of gold coin, gold bullion or sterling securities provided the amount of gold was not less than Rs. 40 crores in
value. The remaining three-fifths of the assets might be held in rupee coins, Government of India rupee securities,
eligible bills of exchange and promissory notes payable in India. Due to the exigencies of the Second World War
and the post-was period, these provisions were considerably modified. Since 1957, the Reserve Bank of India is
required to maintain gold and foreign exchange reserves of Ra. 200 crores, of which at least Rs. 115 crores should
be in gold. The system as it exists today is known as the minimum reserve system. 

Banker to Government

The second important function of the Reserve Bank of India is to act as Government banker, agent and adviser. The
Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and
Kashmir. The Reserve Bank has the obligation to transact Government business, via. to keep the cash balances as
deposits free of interest, to receive and to make payments on behalf of the Government and to carry out their
exchange remittances and other banking operations. The Reserve Bank of India helps the Government - both the
Union and the States to float new loans and to manage public debt. The Bank makes ways and means advances to
the Governments for 90 days. It makes loans and advances to the States and local authorities. It acts as adviser to the
Government on all monetary and banking matters.

Bankers' Bank and Lender of the Last Resort

The Reserve Bank of India acts as the bankers' bank. According to the provisions of the Banking Companies Act of
1949, every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of its
demand liabilites and 2 per cent of its time liabilities in India. By an amendment of 1962, the distinction between
demand and time liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per cent of
their aggregate deposit liabilities. The minimum cash requirements can be changed by the Reserve Bank of India.

Controller of Credit

The Reserve Bank of India is the controller of credit i.e. it has the power to influence the volume of credit created by
banks in India. It can do so through changing the Bank rate or through open market operations. According to the
Banking Regulation Act of 1949, the Reserve Bank of India can ask any particular bank or the whole banking
system not to lend to particular groups or persons on the basis of certain types of securities. Since 1956, selective
controls of credit are increasingly being used by the Reserve Bank.

The Reserve Bank of India is armed with many more powers to control the Indian money market. Every bank has to
get a licence from the Reserve Bank of India to do banking business within India, the licence can be cancelled by the
Reserve Bank of certain stipulated conditions are not fulfilled. Every bank will have to get the permission of the
Reserve Bank before it can open a new branch. Each scheduled bank must send a weekly return to the Reserve Bank
showing, in detail, its assets and liabilities. This power of the Bank to call for information is also intended to give it
effective control of the credit system. The Reserve Bank has also the power to inspect the accounts of any
commercial bank. 

As supereme banking authority in the country, the Reserve Bank of India, therefore, has the following powers:
(a) It holds the cash reserves of all the scheduled banks. 

(b) It controls the credit operations of banks through quantitative and qualitative controls. 

(c) It controls the banking system through the system of licensing, inspection and calling for information. 

(d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks.

Custodian of Foreign Reserves

The Reserve Bank of India has the responsibility to maintain the official rate of exchange. According to the Reserve
Bank of India Act of 1934, the Bank was required to buy and sell at fixed rates any amount of sterling in lots of not
less than Rs. 10,000. The rate of exchange fixed was Re. 1 = sh. 6d. Since 1935 the Bank was able to maintain the
exchange rate fixed at lsh.6d. though there were periods of extreme pressure in favour of or against

the rupee. After India became a member of the International Monetary Fund in 1946, the Reserve Bank has the
responsibility of maintaining fixed exchange rates with all other member countries of the I.M.F.

Besides maintaining the rate of exchange of the rupee, the Reserve Bank has to act as the custodian of India's
reserve of international currencies. The vast sterling balances were acquired and managed by the Bank. Further, the
RBI has the responsibility of administering the exchange controls of the country.

Supervisory functions

In addition to its traditional central banking functions, the Reserve bank has certain non-monetary functions of the
nature of supervision of banks and promotion of sound banking in India. The Reserve Bank Act, 1934, and the
Banking Regulation Act, 1949 have given the RBI wide powers of supervision and control over commercial and co-
operative banks, relating to licensing and establishments, branch expansion, liquidity of their assets, management
and methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorised to carry out
periodical inspections of the banks and to call for returns and necessary information from them. The nationalisation
of 14 major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing the
growth of banking and credit policies towards more rapid development of the economy and realisation of certain
desired social objectives. The supervisory functions of the RBI have helped a great deal in improving the standard of
banking in India to develop on sound lines and to improve the methods of their operation.

Promotional functions

With economic growth assuming a new urgency since Independence, the range of the Reserve Bank's functions has
steadily widened. The Bank now performs a varietyof developmental and promotional functions, which, at one time,
were regarded as outside the normal scope of central banking. The Reserve Bank was asked to promote banking
habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialised financing
agencies. Accordingly, the Reserve Bank has helped in the setting up of the IFCI and the SFC; it set up the Deposit
Insurance Corporation in 1962, the Unit Trust of India in 1964, the Industrial Development Bank of India also in
1964, the Agricultural Refinance Corporation of India in 1963 and the Industrial Reconstruction Corporation of
India in 1972. These institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and
to mobilise savings, and to provide industrial finance as well as agriculturalfinance. As far back as 1935, the Reserve
Bank of India set up the Agricultural Credit Department to provide agricultural credit. But only since 1951 the
Bank's role in this field has become extremely important. The Bank has developed the co-operative credit movement
to encourage saving, to eliminate moneylenders from the villages and to route its short term credit to agriculture.
The RBI has set up the Agricultural Refinance and Development Corporation to provide long-term finance to
farmers.

b)

Central Board of Directors Deputy Regional of the

Usha Thorat Y. H. Malegam
Governor West

Name Position
K. C. Deputy Suresh D. Regional of the
Chakrabarty Governor Tendulkar East
Duvvuri
Governor
Subbarao
Deputy Regional of the
Subir Gokarn U. R. Rao
Governor North
Shyamala Deputy
Gopinath Governor
Lakshmi Regional of the Chairman
Chand South Azim Premji WIPRO
Limited

Lawyer former
H. P. Ranina Supreme Court Chairman Chairman
Kumar Suresh Neotia
of India Aditya Birla Ambuja
Mangalam
Group of Cement Co.
Birla
Companies

Chairman
Ashok S. Firstsource Shashi
Ganguly Solutions Advisor
Rajagopalan
Limited

c) MUMBAI - INDIA'S central bank has hiked cash reserve requirements for lenders but left key interest rates
unchanged as it tries to contain inflation without undermining an economic recovery.

The three quarters of a percentage point increase on Friday in the reserve requirement for banks to 5.75 per cent was
more than expected.

The Reserve Bank of India also raised its projection for economic growth for the fiscal year ending March from 6
per cent to 7.5 per cent. It says inflation will likely hit 8.5 per cent by March.

The bank said the hike in reserve requirements would drain 360 billion rupees ($7.8 billion) of liquidity from the
financial system. Economists expect the bank to raise interest rates by April.

This is the first meaningful monetary policy reversal from the Reserve Bank, which has infused India's trillion dollar
economy with more than US$125 billion in actual or potential liquidity since the global financial crisis hit in
September 2008.

'Our main policy instruments are all currently at levels that are more consistent with a crisis situation than with a
fast-recovering economy,' the bank said in a statement. 'It is, therefore, necessary to carry forward the process of exit
further.'

d) To address the problem of banking panics

To serve as the central bank for the country

To strike a balance between private interests of banks and the centralized responsibility of government

To supervise and regulate banking institutions

 To protect the credit rights of consumers

To manage the nation's money supply through monetary policy to achieve the sometimes-conflicting goals

ofmaximum employment, stable prices, including prevention of either inflation or deflation[31]moderate long-
term interest rates

To maintain the stability of the financial system and contain systemic risk in financial markets

To provide financial services to depository institutions, the government, and foreign official institutions, including
playing a major role in operating the nation's payments system

To facilitate the exchange of payments among regions

To respond to local liquidity needs

To strengthen the country’s standing in the world economy

f) Credit assistance to MSEs upto Rs.5 lakhs is extended without any collateral securities

Collateral free financial assistance above Rs.5 lakhs and upto Rs.100.00 lakhs is extended to Micro & Small
Enterprises as per operational guidelines

All the eligible collateral free loans extended to Micro & Small Enterprises borrowers are covered under Credit
Guarantee Scheme of Credit guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)

For financial assistance above Rs.100 lakhs to Micro & Small Enterprises, collateral security requirement is
decided on case to case basis on individual merits considering various factors including risks related to the activity
after conducting due diligence about the promoters

In case of mid corporates engaged in manufacturing with investment in plant & machinery above Rs.5 crores upto
Rs.10 crores and requirement ranging between Rs.5 crores to Rs.25 crores, financial assistance is considered
under a special scheme UNION HIGH PRIDE by reducing the collateral coverage even upto 20% of the Bank’s
exposure. In exceptional cases this coverage can be further relaxed provided proper justification for the same
persists

In other cases the quantum of collateral coverage is decided based on the activity and risk involved with the
activity / promoters

However quantum of collateral is not a hurdle while extending financial assistance to MSMEs in general

g) Reduced Reserve Requirements : During 1990s both the Cash Reserve Ratio (CRR) and the Statutory Liquidity
Ratio (SLR) were reduced to considerable extent. The CRR was at its highest 15% plus and additional CRR of
10% was levied, however it is now reduced by 4%. The SLR is reduced form 38.5% to a minimum of 25%.

1. Increased Micro Finance : In order to strengthen the rural finance the RBI has focused more on the Self Help
Group (SHG). It comprises small and marginal farmers, agriculture and non-agriculture labour, artisans and
rural sections of the society. However still only 30% of the target population has been benefited.
 2. Fiscal Monetary Separation : In 1994, the Government and the RBI signed an agreement through which
the RBI has stopped financing the deficit in the government budget. Thus it has seperated the Monetary
policy from the fiscal policy.
3. Changed Interest Rate Structure : During the 1990s, the interest rate structure was changed from its
earlier administrated rates to the market oriented or liberal rate of interest. Interest rate slabs are now
reduced up to 2 and minimum lending rates are abolished. Similarly, lending rates above Rs. Two lakh are
freed.
4. Changes in Accordance to the External Reforms : During the 1990, the external sector has undergone
major changes. It comprises lifting various controls on imports, reduced tariffs, etc. The Monetary policy
has shown the impact of liberal inflow of the foreign capital and its implication on domestic money supply.
5. Higher Market Orientation for Banking : The banking sector got more autonomy and operational
flexibility. More freedom to banks for methods of assessing working funds and other functioning has
empowered and assured market orientation.

h) These fiscal responsibilities generally include the disbursement of interest and maturity payments on
bonds, dividend payouts, and certain tax issues related to corporate securities.
AFGHANISTAN

a) Formulate, adopt and execute the monetary policy of Afghanistan.

Hold and manage the official foreign exchange reserves of Afghanistan.

Print and issue Afghani banknotes and coins.

Act as banker and adviser to, and as fiscal agent of the State.

License, regulate and supervise banks, foreign exchange dealers, money service providers, payment
system operators, securities service providers, securities transfer system operators.

Establish, maintain and promote sound and efficient systems for payments, for transfers of
securities issued by the State or DAB, and for the clearing and settlement of payment transactions and
transactions in such securities.

b) Members of Supreme Council

 
Abdul Qadeer Fitrat ,DAB Governor and Chairman of Supreme
 
Coucil (Supervisory Board or Board of Directors).
     
Mohibullah Safi, First Deputy Governor of DAB and vice Chairman
 
Supreme Council, (Supervisory Board or Board of Directors).
     
Dr. Abdul Ghani Ghawasi Member of Supreme Council,
 
(Supervisory Board or Board of Directors).
     

Dr. Homayoon Qaumi Member of Supreme Council, (Supervisory

 
Board or Board of Directors).

     
Dr. Shah Mohammad Mehrabi Member of Supreme
 
Council, (Supervisory Board or Board of Directors).
     
Noorullah Delawari Member of Supreme Council, (Supervisory
 
Board or Board of Directors).
     
Mr. Ghulam Faroq Achikzad Member of Supreme Council,
  (Supervisory Board or Board of Directors)
 d)

To address the problem of banking panics

To serve as the central bank for the country

To strike a balance between private interests of banks and the centralized responsibility of government

To supervise and regulate banking institutions

To protect the credit rights of consumers

To manage the nation's money supply through monetary policy to achieve the sometimes-conflicting goals

ofmaximum employment, stable prices, including prevention of either inflation or deflation[31]moderate long-
term interest rates

To maintain the stability of the financial system and contain systemic risk in financial markets

To provide financial services to depository institutions, the government, and foreign official institutions, including
playing a major role in operating the nation's payments system

To facilitate the exchange of payments among regions

To respond to local liquidity needs

To strengthen the country’s standing in the world economy

e) Bank reserves are banks' holdings of deposits in accounts with their central bank (for instance the European
Central Bank or the Federal Reserve, in the latter case including federal funds), plus currency that is physically
held in bank vaults (vault cash). The central banks of some nations set minimum reserve requirements. Even when
no requirements are set, banks commonly wish to hold some reserves, called desired reserves, against unexpected
events.

 
ARGENTINA

a) Established by six Acts of Congress enacted on May 28, 1935, the bank replaced Argentina's Currency board,
which had been in operation since 1890. Its first President was Ernesto Bosch, who served in that capacity from
1935 to 1945.

The Central Bank's headquarters on San Martín Street (in the heart of Buenos Aires' old financial district, known
locally as the city), was originally designed in 1872 by architects Henry Hunt and Hans Schroeder. Completed in
1876, the Italian Renaissance-inspired building initially housed the Mortgage Bank of the Province of Buenos Aires.
The Central Bank's offices were transferred to an adjacent address upon its establishment, and were expanded to
their present size by the purchase of the Mortgage Bank building in 1940, as well as by the construction of a twin
building behind it.

The Central Bank was a private entity during its first decade, and British Empire interests held a majority stake.
Pursuant to the Roca-Runciman Treaty of 1933, Central Bank reserves accrued from Argentine trade surpluses with
the United Kingdom were deposited in escrow at the Bank of England, and this clause, which had led to over US$1
billion in inaccessible reserves (more than half the total) by 1945, prompted the Central Bank's nationalization by
order of Juan Perón in December.[2]

Normally subordinate to the Economy Ministry in matters of policy, the Central Bank took a more prominent role
during the Latin American debt crisis when, in April 1980, it enacted Circular 1050. This measure, enacted to shield
the financial sector from the cost of receiving payments in suddenly devalued pesos, bankrupted thousands of
homeowners and businesses by indexing mortgages to the value of the US dollar locally, which rose around
fifteenfold by July 1982, when Central Bank President Domingo Cavallo rescinded the policy. During the years of
Cavallo's Convertibility Law, which established a 1:1 fixed exchange rate between the Argentine peso and the
United States dollar in March 1991, the BCRA was mainly in charge of keeping foreign currency reserves in synch
with the monetary base.

Since the repeal of the Convertibility Law in January 2002, the devaluation and depreciation of the peso and the end
of the economic crisis, its role has been the accumulation of reserves in order to gain a measure of control of the
exchange rate. The BCRA buys dollars from the market to neutralize the large surplus of the foreign trade balance
and keep the official exchange rate at the level desired by the government, currently around 3.80 pesos per dollar,
considered internationally competitive for exports and useful to encourage import substitution (see Foreign trade of
Argentina).

Near the end of 2005, President Néstor Kirchner vowed to pay the Argentine public debt with the International
Monetary Fund in a single, anticipated disbursement. The payment was effected on 3 January 2006, employing
about US$ 9.5 billion from the BCRA's reserves. This decreased the amount of reserves by one third, but did cause
adverse montary effects, save from an increased reliance on the local bond market, which requires somewhat higher
interest rates.

The Central Bank's Reconquista Street entrance, built in 1940 in imitation of its older, opposite entrance.

The BCRA continues to intervene in the exchange market, usually buying dollars, though occasionally selling small
amounts (for example, reacting to rumours of a possible increase of the Federal Reserve's reference rate, which
caused a minor spike in the dollar's value). Its reserves reached more than US$ 28 billion in September 2006,
recovering the levels prior to the IMF payment, and rose to US$ 32 billion at the close of the year. The exchange
rate was maintained relatively undervalued, prompted by the BCRA's market intervention as a buyer.

In its October 2006 issue, the influential Global Finance magazine gave Martín Redrado, President of the Central
Bank, a D grade in its survey of global central bankers. The magazine held that Redrado "missed the opportunity to
act to curb inflation when the economy was expanding at its fastest ... with inflation expected to reach 12% in 2006,
up from 7.7% in 2005 and 4.4% in 2004." Inflation for 2006 eventually amounted to 9.8%, helped by price controls,
though the public's perception of it was higher due to the composition of the sample used to measure the index. The
BCRA obtained exceptionally high returns on investment funded by its reserves, for a total of US$ 1.4 billion USD
(a yearly rate of 5.7%) in 2006.

Since early 2008, the Central Bank of Argentina has held foreign exchange reserves of between US$47 and US$50
billion. The official exchange rate, which had oscillated around 3 Argentine pesos per US dollar since early 2003,
was adversely impacted by the international, 2008 financial crisis, and weakened to nearly 4 pesos per dollar by the
first half of 2010.

Fallout from the 2008 financial crisis later forced the left-wing Argentine government of President Cristina
Fernández de Kirchner to seek domestic financing for growing public spending, as well as for foreign debt service
obligations. The president ordered a US$6.7 billion account opened at the Central Bank for the latter purpose in
December 2009, implying the use of the Central Bank's foreign exchange reserves, and drawing direct opposition
from Redrado. He was dismissed by presidential decree on January 7, 2010, prior to which Economy Minister
Amado Boudou had announced that Mario Blejer (who had expressed support for the measure) would be appointed
in his stead. Following an impasse, Redrado was ultimately replaced by Mercedes Marcó del Pont, President of the
National Bank, on February 3.

Redrado's removal triggered a vocal rebuke from opposition figures in Congress, who, citing the need to preserve
the Central Bank's nominal autarky, expressed doubts as to the decree's legality. A court injunction blocked
Kirchner's planned use of reserves for the retirement of high-interest bonds, a move that could have provided
numerous vulture funds (holdouts from the 2005 debt restructuring who had resorted to the courts in a bid for higher
returns on their defaulted bonds) a legal argument against the central bank's autarky, and thus make judgement liens
against the central bank's overseas accounts possible.

b) Chairman: Robert B. Zoellick 

   Secretary: Kristalina I. Georgieva 
   General Counsel:  Anne Marie Leroy

Member countries of the World Bank Group appoint or elect Executive Directors* to the Boards of the  International
Bank for Reconstruction and Development (IBRD), International Development Agency (IDA), International Finance
Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA). While there are four Boards,  Executive
Directors serving on these Boards are usually the same. Under the Articles of Agreement of  IDA and IFC,
Executive Directors and Alternates of the Bank serve ex officio as Executive Directors and Alternates of IDA and
IFC, as long as the country that appoints them, or any one of the countries that have elected them, is a member of
IFC and IDA. Furthermore, it is customary for the Directors of MIGA to be the same individuals as the Executive
Directors of the Bank.  A detailed description on the nature and work of the Board can be obtained by viewing the
pages below:

  Composition of the Boards

  Executive Directors

  Election or Appointment of Executive Directors

  Voting Powers

  Ethics Matters
BAHRAIN

a) The Central Bank of Bahrain was established in 1973 as the Bahrain Monetary Agency, shortly after Bahrain

gained its independence from the United Kingdom. As per Decree No. 64 of 2006 with respect to promulgating the
Central Bank of Bahrain and Financial Institutions Law[1], the Bahrain Monetary Agency is now the Central Bank
of Bahrain. Its responsibilities include:

 Implement monetary policy

 Supervise and regulate the banking sector
 Act as the government’s fiscal agent
 Encourage the growth of Bahrain as a major international financial centre
 Manage the foreign currency cash reserves of the Kingdom.

The Bank is located in the Diplomatic Area. It also houses a splendid coin & currency museum with collections
dating back to 653 AD.

d)

The CBB uses three different types of instruments for the conduct of monetary policy:

•CBB offers a foreign exchange facility for buying and selling Bahraini dinars against US dollar at rates very
close to the official exchange rate.

•CBB offers a set of deposit and lending standing facilities in Bahraini dinars. The interest rates on the standing
facilities are the CBB policy interest rates. The CBB policy rates guide the short-term interest rates in the Bahraini
money market, and ultimately influence the deposit and lending rates that the banks offer to customers. The fixed-
exchange rate regime implies that the CBB policy rates are normally closely aligned to US interest rates.

•CBB requires commercial banks to hold unremunerated reserves with the CBB. The reserve requirement system
contributes to adjust the CBB's structural liquidity situation vis-à-vis the banking sector. The reserve requirement
system is not intended to serve as an active monetary policy instrument for day-to-day liquidity management.

The CBB does not maintain any administrative controls over market interest rates. There are no interest rate caps
or floors and the CBB does not seek to influence directly the cost of credit or the distribution of credit in the
economy. The private sector is thus free to allocate credit as it sees fit to maximize the return on its investments.

The CBB monetary policy operations aim to ensure that the liquidity situation in the banking sector is appropriate.
The Bahraini dinar liquidity of the commercial banks consists mainly of the current account balances they hold
with the CBB. These balances, which can be traded between banks in the money market, fluctuate from day to
day, mainly as a consequence of the Government's conversions of US dollar to finance its domestic expenditure,
the commercial banks purchase of US dollars from the CBB, changes in the amount of currency in circulation and
changes in the banks reserve balances with the CBB.
 COSTA RICA

a) At the end of the seventies, by means of a change in the Organic Law of the Banking System, the possibility that
the state commercial banks could carry out activities outside of the country, was first seen. Thereafter, in 1972 said
law was changed again, in order to permit the State Banks to select the organizations which would be the most
convenient to carry out transactions abroad, under the condition that they act together. From that moment on, a
group of Costa Rican bankers started a difficult task, headed by the NATIONAL BANK which as a leading bank in
1973 presented a request for authorization to open a branch in Panama, before the Central Bank of Costa Rica. At
the same time, representatives of other State Banks, also intervened with these becoming shareholders of BICSA. In
October of 1974, the Central Bank of Costa Rica issued the guidelines under which the Costa Rican state banks
could open a bank in the Republic of Panama and on the 25 th of November of 1975, the General Comptroller of the
Republic issued the related authorization.

  From its founding on the 20 th of September of 1976, BICSA had the definite support of the State Banks, condition
that up to today it still maintains, this being its principal strength and method of development in the important
banking activity that it has developed in Costa Rica and abroad. Its initial capital was US$2.5 million and at the
present time BICSA has a capital of US$78.9 millions. The original objective of BICSA was to offer commercial
financing services to its base of corporative clients. Different factors were considered in choosing Panama as the
country in which to install the first office of BICSA, among which the favorable legislation of the country, the
presence of a strong and active financial center and the opportunities offered by initiatives such as the Central
American Common Market are outstanding. From its beginning, the operation of BICSA in Panama was developed
with strong professionalism in a very competitive market, which up to today is reflected in the outstanding position
that it occupies among the Panamanian banks with foreign licenses. Panama also fulfills a role in the business of
correspondent banks, concentrating itself in Brazil, Venezuela, Peru, Ecuador and Bolivia. Due to growth and
diversification of banking businesses in Costa Rica orientated towards foreign commerce, at the end of the seventies,
it was necessary to create an office in Costa Rica. In this way, on the 20 th of September, 1978, an office of
representation was opened in San Jose. In 1978, the efforts to convert the office of San Jose into a Costa Rican
private bank which offered clients a series of services specific to corporative banks and complementary services for
businesses abroad, were successful.

  The economic situation which Costa Rica found itself at the beginning of the eighties showed the important role of
BICSA within the Costa Rican economy, since in the crisis of the external debt and the financial stagnation of the
country, BICSA was an outstanding protagonist. During this period, it was very important for BICSA to be the only
medium for the member banks and the Central Bank of Costa Rica to carry out business abroad, since, because of
the world economic situation, the international financial community implemented a series of measures which
affected its relation with the Costa Rican banks, in such a way, that this period had great significance for BICSA
since it permitted it to explore the possibilities presented for development of foreign commerce. For the above
reasons and the experience acquired during this process, the idea of installing a banking agency in the United States
arose, and after various studies determined the convenience of establishing such in the State of Florida, among other
reasons, because of its proximity with the Caribbean and Central America, the importance at world level of the Port
of Miami and the solid international commercial structure. In September 1983, the office of BICSA in Miami was
born, with a license of international banking agency granted by the banking authorities in Tallahassee. Its activities
extended to operations of foreign commerce and trying to increase its relations with the private sector, with
correspondent banks as well as developing personal and private banking. At present, besides our branch in the City
of Miami, we have offices of representation in Costa Rica, Guatemala, El Salvador and Nicaragua.
IRAQ

a) The Central Bank of Iraq was established as Iraq's central bank by Central Bank of Iraq Law 2004 with
authorised capital of 100 billion dinars.[1] The current Governor of the Central Bank of Iraq is Sinan Al-Shabibi.

The primary objectives of the CBI shall be to achieve and maintain domestic price stability and to foster and
maintain a stable and completive market – based financial system subject to these objectives, the CBI shall
also promote sustainable growth, employment and prosperity in Iraq.

The functions of the CBI in achieving the objectives mentioned above. Formulate and implement monetary
policy including exchange rate policy for Iraq. Hold gold and manage the state reserves of gold. Issue and
manage Iraq currency. Establish oversee and promote sound and efficient payment system. Issue licenses or
permits to banks and to regulate and supervise banks as further specified this law and in the banking law. Carry
out any ancillary tasks or transactions in accidental to the exercise of its functions under Iraqi law.

The objectives of the Central Bank of the Iraq are as follows:

 maintaining inflation stability

 implementing monetary policy (including exchange rate policies)
 managing the state's reserves
 issuing and managing the Iraqi dinar
 regulating private banks.

As of December 2009, the bank reported total assets valued at over 57 trillion dinars [3]. The bank’s head office
is located in Baghdad with four branches in Basrah, Mosul, Sulaimaniyah and Erbil. However, currently the
bank does not control the financial and administrative affairs of Erbil and Sulaimaniyah branches, as these
branches are technically reporting to the headquarter in Baghdad and for all other issues they are reporting to
Kurdistan Regional Government (KRG) and they are financed by KRG.

As of July 2010 steps and measures have taken place in order to integrate these branches with the headquarter
in Baghdad.
NEW ZEALAND

a) The Reserve Bank of New Zealand is the central bank of New Zealand and is constituted under the Reserve
Bank of New Zealand Act 1989. The Governor of the Reserve Bank is responsible for New Zealand's currency and
operating monetary policy. The Bank's current Governor is Dr. Alan Bollard. Employees of the bank operate under
the framework of a managerial hierarchy.

The Reserve Bank of New Zealand does not offer financial services to the public nor does it offer deposit insurance,
and its website refers people to other financial institutions.

g) The Reserve Bank's primary function, as defined by the Reserve Bank of New Zealand Act 1989 is to provide
"stability in the general level of prices."

The Reserve Bank is responsible for independent management of monetary policy to maintain price stability. The
degree of price stability is determined through a Policy Target Agreement with the Minister of Finance. Also, Policy
Target Agreements are public documents and hence a government cannot secretly change the targets to gain a short
term surge in economic growth.

The mechanism of this is the Official Cash Rate (a percentage) which affects short term interest rates. The Bank
will provide cash overnight at 0.25% above the cash rate to Banks against good security with no limit. Furthermore
the bank will accept deposits from financial institutions with interest at 0.25% less than the official cash rate.

Banks that offer loans at interest higher than the official cash rate will be undercut by Banks that offer cheaper loans,
and banks that loan out lower than the official cash rate will make less compared to other banks which can simply
deposit their money in the Reserve Bank with a higher rate of return. The Reserve Bank borrows and offers loans
with no limit on volumes in order to ensure that the interest rate in the market remains at the Official Cash rate level.

Through controlling this, the Reserve Bank can then influence short term demand in the New Zealand Economy and
use this to control prices.

How the OCR works What is a Policy Target Agreement

Adjustments to the official cash rate are made eight times a year. It can make unscheduled adjustments but does not
usually do so.
MEXICO

a) The Bank of Mexico (Spanish: Banco de México), abbreviated BdeM or Banxico, is Mexico's central bank and
lender of last resort. The Bank of Mexico is autonomous in exercising its functions, and its main objective is to
achieve stability in the purchasing power of the national currency.On December 15 2009,

b) Agustín Carstens was confirmed by the Senate as the new Governor of the Bank of Mexico with 81 votes in
favor and 19 votes against. He is due to take office on 1 January 2010.[1] Banco de Mexico’s five-member board, led
by Governor Agustin Carstens, maintained its overnight rate at 4.5 percent. The decision matched the forecasts of all
20 economists surveyed by Bloomberg.The bank said in a statement that manufacturing exports are increasing
“vigorously” due to higher U.S. demand. Still, policy makers said growth in consumer activity and private
investment have been weak, signaling they won’t raise rates soon, said Tony Volpon at Nomura Holdings Inc.“I
found the comments quite dovish,” said Volpon, who is a Latin America strategist and based in New York. “Even
though they recognize that the economy is growing fast, they also portrayed the economy as having a lot of
slack.”The bank said it expects inflation to remain within forecasts policy makers set in December.“This expectation
is based on the fact that there are no aggregate demand pressures, economic activity remains below its potential,
salary adjustments have been moderate, the exchange rate has appreciated in recent months and medium- and long-
term inflation expectations remain relatively stable,” the bank said.Policy makers expect inflation to be between 4.5
percent and 5 percent in the second quarter.They’re reinforcing the idea that they’re in no rush to be hiking rates and
that there’s an important distinction between growth generated by exports and generally weaker domestic demand,”
said Nick Chamie, head of emerging markets at Royal Bank of Canada.The peso was little changed at 12.1719 at
10:47 a.m. New York time. The peso has gained 7.6 percent this year through yesterday, the best performance
against the dollar among the 16 most-traded currencies tracked by Bloomberg.Policy makers aren’t concerned that
first-quarter inflation reached the upper limit of the their forecasts because the higher reading was largely due to a
temporary increase in volatile components of the price index such as fruits and vegetables, said Sergio Luna at
Citigroup’s Inc.’s Banamex unit in Mexico City.

Inflation is accelerating in the $1.09 trillion economy after the government began raising prices for state-controlled
goods such as gasoline and implemented tax increases called for in the 2010 budget.

Central bank policy makers have said the moves, aimed at boosting government revenue battered by last year’s
recession and falling output at the state oil company, will have a one- time effect on inflation.

Prices in Latin America’s second-biggest economy rose 4.97 percent in March from a year earlier. Core inflation,
which excludes some food and energy prices, slowed to an annual pace of 4.4 percent in March, a two-year low.
BRAZIL

a) Brazilian Central Bank (Portuguese: Banco Central do Brasil) is Brazil's highest monetary authority in, and the
country's governing body in, finance and economics. It was established on December 31, 1964.

The Central Bank is linked with the Ministry of Finance. Like other central banks, the Brazilian central bank is the
principal monetary authority of the country. It received this authority when it was founded by three different
institutions: the Bureau of Currency and Credit (SUMOC), the Bank of Brazil (BB), and the National Treasury.

One of the arms of Brazil's monetary policy is the Banco Central do Brasil's SELIC rate.

d) After the 1999 currency crisis which led to a drastic depreciation of the real, Brazil hasestablished an inflation-
targeting regime for monetary policy. The external anchor implicit in the crawling-peg exchange-rate regime was
replaced with a domestic one: control of inflation by means of setting interest rates. Monetary policy is now more
clearly structured on the basis of one objective (the inflation-rate target) and one instrument (interest rates).

The index of inflation used for the purpose of setting interest rates is the IPCA - Enlarged Consumer Price Index. Its
targets were established a few months after the crisis: 8% in the year 1999; 6% in 2000; and 4% in 2001. A variation
of up to 2 percentage points around the target is permissible (so, for example, in 2000 the rate of inflation needed to
be kept between 4% and 8%).

This system is similar to the one put in place in the UK and associated to the Monetary Policy Committee of the
Bank of England. COPOM is the committee responsible for decisions on interest rates in Brazil. The governor and
all directors of the Central Bank sit on the COPOM and have voting rights.

In Brazil, as in the UK, the Central Bank publishes an inflation report on a quarterly basis which serves as a basis for
decision-making on interest rates. The minutes of COPOM meetings are also published.
MALAYSIA

a) In 1837 the Indian rupee was made the sole official currency in the Straits Settlements, but in 1867 silver dollars
were again legal tender. In 1903 the Straits dollar, pegged at two shillings and fourpence (2s. 4d.), was introduced
by the Board of Commissioners of Currency and private banks were prevented from issuing notes. Since then
continuity of the currency has been broken twice, once by the Japanese occupation 1942 - 1945, and secondly by the
devaluation of the Pound Sterling in 1967, when notes of the Board of Commissioners of Currency of Malaya and
British Borneo lost 15% of their value. The new Bank Negara Malaysia (BNM) is the Malaysian central bank. Its
headquarters is located in Kuala Lumpur, the capital of Malaysia.

Bank Negara was established on 26 January 1959, to issue currency, act as banker and adviser to the Government...

In 1985, following the "Plaza meeting" of G-5 finance ministers in New York City, the US dollar fell sharply
causing major losses in Bank Negara's dollar reserves. The bank responded by starting a program of aggressive
speculative trading to make up these losses (Millman, p. 226). Jaffar Hussein, the Bank Negara Governor at the
time, referred to this strategy as "honest-to-God trading" in a December 1988 speech in New Delhi.

In the late 1980s, Bank Negara under Governor Jaffar Hussein, was a major player in the forex market. Its activities
caught the attention of many; initially, Asian markets came to realize the influence Bank Negara had on the direction
of forex market. Alan Greenspan acting the Federal Reserve chairman later realized Bank Negara's massive
speculation activities and requested the Malaysian central bank to stop it.

BNM sold between $500 million on September 21, 1990 - $1 billion worth of pound sterlings in a short period,
driving the pound down 4 cents on the dollar (Millman, p. 228). In response, bankers began front running Bank
Negara's orders. Two years later, Bank Negara attempted to defend the value of the British pound against attempts
by George Soros and others to devalue the pound sterling. George Soros won and Bank Negara reportedly suffered
losses of more than USD $4 billion. [1] Bank Negara lost an additional $2.2 billion in speculative trading a year
later (Millman, p. 229). By 1994, the bank became technically insolvent and was bailed out by the Malaysian
Finance Ministry (Millman, p. 229).

In 1998, Bank Negara pegged 3.80 ringgit to a US dollar after the ringgit substantially depreciated during the 1997
Asian financial crisis. In July 2005, the central bank abandoned fixed exchange rate regime in favor of managed
floating exchange rate system an hour after China floated its own currency. This resulted in capital flight of more
than USD 10 billion, thought to be due to the repatriation of speculative funds that entered the country in
anticipation of the abandonment of the peg: - Bank Negara's foreign exchange reserves increased by USD24 billion
in the one year period between July 2004 and July 2005 (see table below). During this period there was widespread
believe that the ringgit was undervalued and that if the peg was removed, the ringgit would appreciate.

Bank Negara Foreign Exchange Reserves (Source: Bank

Negara, rounded to the nearest billion USD)

31 July 2004 USD 54 billion

31 December 2004 USD 66 billion

31 July 2005 USD 78 billion

31 March 2007 USD 88 billion

31 July 2007 USD 99 billion

31 December 2007 USD 101 billion[1]

31 March 2008 USD 120 billion[2]

30 December 2008 USD 92 billion

Bank Negara continues to run negative interest rate differential to USD. The ringgit has appreciated gradually since
the peg was abandoned and as at 28 May 2007, it traded at around 3.40 to the US dollar. Malaysia's foreign
exchange reserves have increased steadily since the initial capital flight, and as at 31 March 2007 the reserves stood
at approximately USD88 billion, which is approximately USD10 billion more than the reserves just prior to the peg
being abandoned.

On 31 July 2007 the Malaysian reserves stood at approximately USD98.5 billion which is equivalent to RM340.1
billion. The figure increase to USD 101.3 billion in 31 December 2007 which is equivalent to RM335.7 billion.[1]
Bank Negara's international reserves increase further 15 days later to USD 104.3 billion or MYR 345.4 billion.[3][4]

b) Candidate must possess at least a Bachelor's Degree, Post Graduate Diploma, Professional Degree or Master's
Degree in Economics or equivalent. Working experience in the field of monetary economics is an added
advantage. Familiarity with analytical and econometric techniques as well as understanding the structure of the
Malaysian economy and financial system is essential. Possess knowledge of economics, particularly monetary and
international economics. Required language(s): Bahasa Malaysia, English
At least 3 year(s) of working experience in the related field is required for this position.
1 Full Time position available.

Bank Negara Malaysia is headed by a nine-member Board of Directors. Its ex-officio members of the Board
include the Governor, the Deputy Governors and the Secretary- General to the Treasury. The Governor is the
chairman of the Board and the Board is required to meet at least once a month.

The roles and responsibilities of Bank Negara Malaysia have evolved throughout the years. Today, Bank Negara
Malaysia emphasises on the three pillars of central banking namely monetary stability, financial stability and the
payments system. In addition, Bank Negara Malaysia also plays a developmental role in respect to economic
management, institutional building and development of the financial system.

Bank Negara Malaysia is also actively involved in promoting consumers’ financial capability in the areas of
banking, insurance and money management. Effective learning programmes for young adults, women, and
companies are also available.