Other Banks

UNFINISHED CONTENT

The Other Banks will be working to encourage lending in the economy restricted by interest rates and their capital adequacy requirements set by the central bank and the Bank of International Settlements (BIS) in Basel.


Are they sufficiently capitalised?


The Money Accounts

See the Money Accounts for an explanation.

Money Current Account

The money current account must show the amount of money held in each currency and the transactions that terms that have and will change those amounts over time.

Money Credit/Debt Account

The money credit/debt account must show the amount of money lent and borrowed in each currency and the transactions that terms that have and will change those amounts over time, (Risk and Yield should be known.)



CIA Factbook: Central Bank Lending Rate

CIA Factbook: Other Bank Lending Rate


CIA Factbook: Stock of Narrow Money

CIA Factbook: Stock of Broad Money

Material Current Account

The material current account must show the monetary value of things held of each type and the transactions that terms that have and will change those amounts over time.

Material Credit/Debt Account

The material credit/debt account must show the monetary value of things lent and borrowed of each type and the transactions that terms that have and will change those amounts over time. (Risk and Yield should be known.)


© Tom de Havas 2011. The information under this section is my own work it may be reproduced without modification but must include this notice.




Domestic Credit

World Bank Definition
Domestic credit to private sector refers to financial resources provided to the private sector, such as through loans, purchases of nonequity securities, and trade credits and other accounts receivable, that establish a claim for repayment. For some countries these claims include credit to public enterprises.

CIA definition: Stock of Domestic Credit-This entry is the total quantity of credit, denominated in the domestic currency, provided by financial institutions to the central bank, state and local governments, public non-financial corporations, and the private sector. The national currency units have been converted to US dollars at the closing exchange rate on the date of the information.



CIA Factbook: Stock of Domestic Credit


CIA Factbook definition - This entry is the total quantity of credit, denominated in the domestic currency, provided by financial institutions to the central bank, state and local governments, public non-financial corporations, and the private sector.

New Scientist

Domestic Credit Expansion is not effected by the Balance of payments unlike M3. M3 includes UK deposits in foreign currencies.

Thoughts

When I buy CAD what happens to M3 and DC

My definition:

How motivated is a government to inflate their way out of trouble will depend on debt;
  • Government debts (known as public debt!?)
  • Personal debts
  • Corporate debts
The ultimate total measure of total debt in the currency is called Domestic Credit.




Domestic Credit

= Central bank lending to government + Commercial bank lending to personal and corporate sector

= Broad Money - Central Bank gold and foreign currency reserves + Foreign Central Bank reserves of this currency.

Given that DC is Public and Private debt and we know Public debt we can calculate private debt also.

Then we also can calculate energy reserves in years.



Norway
NM=225
414.5 bn = 256,3 - 48.86bn + ?207.06




Sweden
NM=225
640.2bn =293.2 -0 + 347?


[[[[[[[[[[[[[[[
page 125 of your book "Exchange Rates and International Finance".

(4.10)     FX+DC=M

I take it that M is what would normally be called the Broad Money Supply.

Substituting would suggest;

47.29 + 583.8 = 260.3

I wondered if you could point out how this could happen or point me at something I should read that would explain this. I was wondering whether the reserves of Swedish currency held by foreign central banks might be a factor in this, i.e. FX should be replaced with Swedish central bank reserves minus foreign central bank reserves?
]]]]]]]]]]]]]]]]]]]]


EU
NM=5.542
22.650tr=11.170-0+?11.480


US
1.74tr
32.61 tr=12.39 tr-0+?20.??

Canada
NM=0.5608tr
2.963=1.469-0 +?1.494







China
NM=3.838 tr
8.156 tr=10.08 - 2.622 + ?0.698

Switzerland
NM=384.2 bi
879.7 bi=834.6 - 236.6+?281.7







http://www.swfinstitute.org/what-is-a-swf/



How Far Can Domestic Credit Growth Explain
Speculative Attacks?
Empirical Evidence from Turkey
Mete Feridun
WP 2006 - 23


Purchasing Power Parity


© Tom de Havas 2011. The information under this section is my own work it may be reproduced without modification but must include this notice.






The Money Accounts

See the Money Accounts for an explanation.

Money Current Account

The money current account must show the amount of money held in each currency and the transactions that terms that have and will change those amounts over time.

Money Credit/Debt Account

The money credit/debt account must show the amount of money lent and borrowed in each currency and the transactions that terms that have and will change those amounts over time, (Risk and Yield should be known.)

Material Current Account

The material current account must show the monetary value of things held of each type and the transactions that terms that have and will change those amounts over time.

Material Credit/Debt Account

The material credit/debt account must show the monetary value of things lent and borrowed of each type and the transactions that terms that have and will change those amounts over time. (Risk and Yield should be known.)


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