TyroCity: Banking Notes

Objectives or Goals of Monetary Policy

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

The following are the principal objectives of monetary policy:

Full Employment: Full employment has been ranked among the foremost objectives of monetary policy. It is an important goal not only because unemployment leads to wastage of potential output, but also because of the loss of social standing and self-respect.
Price Stability: One of the policy objectives of monetary policy is to stabilize the price level. Both economists and laymen favor this policy because fluctuations in prices bring uncertainty and instability to the economy.
Economic Growth: One of the most important objectives of monetary policy in recent years has been the rapid economic growth of an economy. Economic growth is defined as “the process whereby the real per capita income of a country increases over a long period of time.”
Balance of Payments: Another objective of monetary policy since the 1950s has been to maintain equilibrium in the balance of payments.

Instruments of Monetary Policy: The instruments of monetary policy are of two types: first, quantitative, general or indirect; and second, qualitative, selective or direct. They affect the level of aggregate demand through the supply of money, cost of money and availability of credit. Of the two types of instruments, the first category includes bank rate variations, open market operations and changing reserve requirements. They are meant to regulate the overall level of credit in the economy through commercial banks. The selective credit controls aim at controlling specific types of credit. They include changing margin requirements and regulation of consumer credit. We discuss them as under:

Bank Rate Policy
The bank rate is the minimum lending rate of the central bank at which it rediscounts first-class bills of exchange and government securities held by the commercial banks. When the central bank finds that inflationary pressures have started emerging within the economy, it raises the bank rate. Borrowing from the central bank becomes costly and commercial banks borrow less from it.

The commercial banks, in turn, raise their lending rates to the business community and borrowers borrow less from the commercial banks. There is a contraction of credit and prices are checked from rising further. On the contrary, when prices are depressed, the central bank lowers the bank rate.

It is cheap to borrow from the central bank on the part of commercial banks. The latter also lower their lending rates. Businessmen are encouraged to borrow more. Investment is encouraged. Output, employment, income and demand start rising and the downward movement of prices is checked.

Open Market Operations:

Open market operations refer to sale and purchase of securities in the money market by the central bank. When prices are rising and there is need to control them, the central bank sells securities. The reserves of commercial banks are reduced and they are not in a position to lend more to the business community.

Further investment is discouraged and the rise in prices is checked. Contrariwise, when recessionary forces start in the economy, the central bank buys securities. The reserves of commercial banks are raised. They lend more. Investment, output, employment, income and demand rise and fall in price is checked.

Changes in Reserve Ratios
This weapon was suggested by Keynes in his Treatise on Money and the USA was the first to adopt it as a monetary device. Every bank is required by law to keep a certain percentage of its total deposits in the form of a reserve fund in its vaults and also a certain percentage with the central bank.

When prices are rising, the central bank raises the reserve ratio. Banks are required to keep more with the central bank. Their reserves are reduced and they lend less. The volume of investment, output and employment are adversely affected. In the opposite case, when the reserve ratio is lowered, the reserves of commercial banks are raised. They lend more and the economic activity is favorably affected.

Selective Credit Controls

Selective credit controls are used to influence specific types of credit for particular purposes. They usually take the form of changing margin requirements to control speculative activities within the economy. When there is brisk speculative activity in the economy or in particular sectors in certain commodities and prices start rising, the central bank raises the margin requirement on them.

The result is that the borrowers are given less money in loans against specified securities. For instance, raising the margin requirement to 60% means that the pledge of securities of the value of Rs 10,000 will be given 40% of their value, i.e. Rs 4,000 as loan. In case of recession in a particular sector, the central bank encourages borrowing by lowering margin requirements.

Compiled and collected by
Basudev Sharma Poudel(PHD)

Factor affecting money supply

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

The supply of money in a modern economy and financial system is determined by three key factors:

“Open market operations” – this is effectively the same as Quantitative Easing. The Central Bank buys government bonds, effectively creating money
The “reserve requirement” imposed on banks – this is the % of deposits made by customers at the bank that the bank must keep hold of rather than lending it out
The policy interest rate set by the central bank – the rate of interest will influence how many households and businesses are willing and able to borrow. Most money in a modern economy is created by commercial bank lending so the rate of interest ultimately does have a bearing on the supply of money

Key factors affecting the demand for money:

The rate of interest on loans
The number / value of monetary transactions that we expect to carry out
The extent to which we also want to hold other financial assets, such as bonds, property, saving (this is also influenced by the rate of interest) – this is known as the speculative motive for holding money
Changes in GDP
The extent to which it is possible to use debit cards / credit cards i.e. the pace of financial innovation
The extent to which we might have to pay out large unexpected payments, for example, for i.e. the precautionary motive
The rate of anticipated inflation
Inter-bank lending
Money at call
Refinanceable export credits
Commercial bills
Central Government debt: internal considerations
Local authority short-term borrowing

Compiled and collected by
Krishna Prasad Aryal
Assistant Branch Manager
Rastriya Banijya Bank
Branch Office Parasi

Fiscal Policy

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

Fiscal policy plays an increasingly important role in many developing countries. Decisions on fiscal policy, especially if properly synchronized with monetary policy, can help smoothen business cycles, ensure adequate public investment and redistribute incomes. The four main components of fiscal policy are:

expenditure, budget reform
revenue (particularly tax revenue) mobilization,
deficit containment/ financing and
determining fiscal transfers from higher to lower levels of government.

Fiscal policy works through both aggregate demand and aggregate supply channels. Changes in total taxes and public expenditure affect the level of aggregate demand in the economy, whereas, the structure of taxation and public expenditure affect, among others, the incentives to save and invest (at home and abroad), take risks, and export and import goods and services.

Government’s revenue (taxation) and spending policy designed to

counter economic cycles in order to achieve lower unemployment,
achieve low or no inflation, and
achieve sustained but controllable economic growth.

In a recession, governments stimulate the economy with deficit spending (expenditure exceeds revenue). During the period of expansion, they restrain a fast-growing economy with higher taxes and aim for a surplus (revenue exceeds expenditure). Fiscal policies are based on the concepts of the UK economist John Maynard Keynes (1883-1946) and work independently of monetary policy which tries to achieve the same objectives by controlling the money supply.

Objectives of fiscal policy

Full employment
Price stability
Accelerating the rate of economic development
Optimum allocation of resources
Equitable distribution of income and wealth
Economic stability
Capital formation and growth
Encouraging Investment

Contractionary fiscal policy is when the government either cuts spending or increases revenue through higher taxes. The purpose is to slow growth to a healthy economic level. Although you may think that there’s no such thing as an economy that’s growing too fast, an overheated economy has a lot of negative repercussions. First, it usually creates an asset bubble, similar to what happened to housing industry in 2006. Second, it lowers unemployment to below the natural rate of unemployment. This makes it difficult for employers to find enough workers to meet market demand.

Third, it can create inflation. That’s when prices, and often wages, rise higher and higher. This can destroy savings and your standard of living. Fourth, an economy that’s growing too fast will inevitably burn out, leading to a recession. For more, see Business Cycle.

Contractionary fiscal policy is so named because it actually contracts the economy by reducing the amount of money available for businesses and consumers to spend.

The purpose of contractionary fiscal policy is to cool off growth and prevent inflation. That’s only needed during the peak phase of the business cycle. That’s the only time the government should increase spending beyond the level of revenue it receives. It’s also the only time it should cut taxes below the level needed to support spending.

Expansionary fiscal policy is when the government uses its budgeting tools to provided consumers and businesses with more money. These tools include increased spending, including transfer payments, or tax cuts. It usually uses a combination of all three. In the United States, Congress must generally approve these measures.

Expansionary fiscal policy is so named because it expands the amount of money available for consumers and businesses to spend.

It puts more money into consumers’ hands to give them more purchasing power. It uses subsidies, transfers payments including welfare programs, and income tax cuts. It reduces unemployment by contracting public works or hiring new government workers. All these measures increase demand. That boosts business profit. They use it for new investment and hiring to meet the increased demand.

Fiscal policy is used by elected officials to change the business cycle. Although it can be more powerful than monetary policy, it is rarely used as effectively. That’s because elected officials have different opinions on the best ways to use fiscal policy.

Expansion: When the economy is in the expansion phase, politicians are happy because their constituents are happy. They will pursue other goals, such as foreign policy, defense, or immigration.

Peak: During the irrational exuberance phase, politicians will also ignore fiscal policy. However, this is they should pursue a contractionary fiscal policy to avoid the peak. That means raising taxes and cutting spending. However, since the budget cycle is usually 18 months in the making, by the time the economy reaches the peak, it’s probably too late. In addition, politicians don’t get re-elected by doing either of those things.

Contraction: This is when expansionary fiscal policy is desperately needed. That means cutting taxes and increasing spending to create jobs, demand, and confidence. Find out what are the best unemployment solutions.

Compiled and collected by
Basudev Sharma Poudel(PHD)

Monetary Policy

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

Definition: Monetary policy is how central banks manage the money supply to guide healthy economic growth. The money supply is credit, cash, checks, and money market mutual funds. The most important of these is credit, which includes loans, bonds, mortgages, and other agreements to repay. Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.

In Nepal, monetary policy of the Central Bank of Nepal is aimed at managing the quantity of money in order to meet the requirements of different sectors of the economy and to increase the pace of economic growth.

The NRB implements the monetary policy through open market operations, bank rate policy, reserve system, credit control policy, and moral persuasion and through many other instruments. Using any of these instruments will lead to changes in the interest rate, or the money supply in the economy. Monetary policy can be expansionary and contractionary in nature. Increasing money supply and reducing interest rates indicate an expansionary policy. The reverse of this is a contractionary monetary policy.

For instance, liquidity is important for an economy to spur growth. To maintain liquidity, the NRB is dependent on the monetary policy. By purchasing bonds through open market operations, the RBI introduces money in the system and reduces the interest rate.

Central banks have three main tools of monetary policy: open market operations, the discount rate, and a bank’s reserve requirement. However, most banks have many more at their disposal. Here’s what they are, and how they all work together to sustain healthy economic growth.

1. Open Market Operations

Open market operations are when central banks buy or sell securities from the country’s banks. When the central bank buys securities, adds cash to the banks’ reserves. This gives them more money to lend more. When the central bank sells the securities, it simply places them on the banks’ balance sheets and reduces its cash holdings. The bank now has less to lend. A central bank buys securities when it wants expansionary monetary policy, and sells them when it executes contractionary monetary policy.

2. Reserve Requirement
The reserve requirement refers to the deposit a bank must keep on hand overnight, either in its vaults or at the central bank. A low reserve requirement allows the banks to lend more of their deposits. That is expansionary because it creates more credit. A high reserve requirement is contractionary since it gives banks less money to lend. It’s especially hard on small banks since they don’t have as much to lend in the first place. Central banks rarely change the reserve requirement because it’s expensive and disruptive for member banks to change their procedures.

3.
Instead, central banks are more likely to adjust their targeted lending rate because it achieves the same result. The Fed funds rate is perhaps the most well-known of these tools. Here’s how it works. If a bank can’t meet the reserve requirement, it borrows from another bank that has excess cash. The interest rate it pays is the Fed funds rate. The amount it borrows is called the Fed funds. The Federal Open Market Committee (FOMC) sets a target for the Fed funds rate at its meetings.
Central banks have several tools to make sure the Fed funds rate meets that target. The Federal Reserve, the Bank of England, and the European Central Bank pay interest on the required reserves and any excess reserves. Bank won’t lend Fed funds for less than the rate they’re receiving from the Fed for these reserves. Banks also use open market operations.

4. Discount Rate
The discount rate is the third tool. It’s the rate that central banks charge its members to borrow at its discount window. Since the rate is higher, banks only use this if they can’t borrow funds from other banks.

How It Works
Central bank tools work by increasing or decreasing total liquidity. This includes both the total amount of capital available to invest or lend, as well as money to spend. In other words, it’s more than the money supply, which consists of M1, (currency and check deposits) and M2 (money market funds, CDs and savings accounts plus M1). Therefore, when people say that central bank tools affect only the money supply, they are understating the impact.

Compiled and collected by
Basudev Sharma Poudel(PHD)

वित्त नीति

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

वित्तीय नीति भनेको पूर्व निर्धारित उद्देश्यहरु हासिल गर्न प्रयोग गरिने राजश्व, सार्वजनिक व्यय तथा सार्वजनिक ऋणसंग सम्बन्धित सरकारी नीति हो । विकासशील देशहरुमा वान्छनीय स्तरको रोजगारी, उच्च आर्थिक वृद्धिदर, आर्थिक स्थिरता, आय र धन सम्पत्तीको समानता जस्ता उद्देश्य प्राप्ति र विकशित देशहरुमा आर्थिक स्थिरताको मुख्य उद्देश्य राखी योजनाबद्ध ढंगले तर्जुमा र कार्यान्वयन गरिने वित्तीय क्रियाकलापहरु जस्तैः– (करारोपण, सार्वजनिक व्यय र सार्वजनिक ऋण) लाई वित्तीय नीति भनिन्छ । वित्तीय नीति अर्थतन्त्रको उत्पादन तथा रोजगारमा सरकारको आय तथा व्ययले पार्ने कुल प्रभावसंग सम्बन्धित हुन्छ ।

वित्त नीतिका उद्देश्यः

आर्थिक वृद्धि
आर्थिक स्थिरता
सामाजिक न्याय वा समानता
पूँजी निर्माण
साधन परिचालन
रोजगारीको अवसर वृद्धि
मुल्य स्थिरता
प्रतिकुल भुक्तानी सन्तुलन सच्याउन ।

सरकारी वित्त नीतिले सरकारको आय तथा व्यय निश्चित सिद्धान्त, नीति र प्रक्रियाको आधारमा हुनुपर्दछ भन्ने मान्यता राख्दछ । यसले देश भरीका साधन परिचालन गर्ने र समग्र देशलाई प्रभावित पार्ने गरी खर्च गर्ने विषयको अध्ययन गर्दछ । यसको कार्यान्वयनबाट देशको सम्पूर्ण अर्थव्यवस्थालाई प्रभावित पार्छ । सरकारले सरकारी वित्तको कार्यान्वयन दीर्घकालीन लक्ष्य राखेर गर्ने गर्दछ तापनि यसको कार्यान्वयन बार्षिक आधारमा वा बर्ष वर्षको आधारमा बार्षिक बजेट तयारगरी गर्ने परम्परा रहेको छ । जसलाई सरकारको वार्षिक बजेट भनिन्छ । वित्तनीतिको उद्देश्य यसका निम्न उपकरणहरु प्रयोग गरेर हासिल गरिन्छ ।

आन्तरिक राजश्व आन्तरिक ऋण वैदेशिक अनुदान वैदेशिक ऋण वित्त नीति तयार गर्दा ध्यान दिनुपर्ने कुरा :

देशको औद्योगिकीकरणको अवस्था, देशको विद्यमान आर्थिक अवस्था, सरकारको आर्थिक उद्देश्य, निजी क्षेत्रको अवस्था, गरीबीको अवस्था, भौतिक पूर्वाधारको अवस्था, मुद्रा तथा पूँजी बजारको अवस्था, नेपालले हाल अंगीकार गरेका वित्तीय नीतिको उद्देश्यहरु र प्रमुख नीतिहरु यस प्रकार छन् ।

उपलब्ध श्रोत साधनको अधिकतम उपयोग गर्ने, व्यापक आधार भएको दीगो र उच्च आर्थिक वृद्धिदर हासिल गर्ने, आर्थिक वृद्धिको प्रतिफल वितरणमा साधनहिन र विपन्न वर्गको पहुँच बढाउने, मानविय विकास एवं रोजगारीका अवसरहरुको सिर्जनामा जोड दिने, सामाजिक न्याय र सुरक्षा प्राप्त गर्ने, लगानीको वातावरणमा सुधार ल्याउने (खास गरी प्राथमिकता प्राप्त क्षेत्रमा लगानी बढाउने), वित्तीय क्षेत्रमा गतिशिलता ल्याउने, सार्वजनिक खर्च धान्न सकिने सिमा भित्र राख्ने, सुशासन एवं विकेन्द्रिकरण पक्ष मजवुत पानर्,े रुग्ण उद्योगको पुनःस्थापना र निर्यात प्रवद्र्धनमा जोड, वित्तीय क्षेत्रको सुधारबाट स्वस्थ, प्रतिस्पर्धी एवं दीगो वित्तीय प्रणालीको विकास, छिटो प्रतिफल दिने र छिटो सम्पन्न गर्न सकिने आयोजनाहरुमा लगानी गर्न जोड दिने, बहुवर्षिय बजेट प्रणालीको कार्यान्वयन (३ वर्षिय), सवै प्रकारको आर्थिक क्रियाकलापलाई आयकरको दायरा भित्र ल्याई राजश्व प्रशासनलाई समयानुकूल गतिशिल र प्रभावकारी बनाउने, मू. अ. कर कार्यान्यवनमा देखिएका कमी कमजोरी हटाई आन्तरिक राजश्वको मेरुदण्डको रुपमा विकशित गर्ने, वैदेशिक सहायतालाई बढि भन्दा बढि आर्थिक एवं सामाजिक प्रतिफल प्राप्त गर्ने क्षेत्रहरुमा परिचालन गरिने, सरकारी संलग्नता आवश्यक नदेखिएका एवं निजी क्षेत्रका लगानी आकर्षित हुन सक्ने संस्थानहरुमा निजी क्षेत्रको लगानी बढाउन निजीकरण कार्यक्रमलाई निरन्तरता दिने, सामाजिक क्षेत्रको विकास, गरीबी निवारण तथा रोजगार प्रवद्र्धन गर्ने, आधारभूत सामाजिक सेवामा सवैको पहुँच बढाउन प्राथमिक शिक्षा, स्वास्थ, खानेपानी र सरसफाईको क्षेत्रमा लगानी बढाउने, गरीबी घटाउने तर्फ लक्षित सम्पूर्ण कार्यक्रम एउटै छातामुनी (गरीबी निवारण कोष) एकीकृत गरी संचालन गरिने, बाणिज्य बैंकहरुलाई अधिक स्वायत्तता दिइने, वित्तीय सेवाको लागि वैदेशिक वैंकहरु स्थापना गर्न दिइने, ऋणपत्रको माध्यामिक बजार विस्तार गर्दै लैजाने, विदेशी विनीमयमा पूर्ण परिवत्र्यता दिइने, देशमा पूँजी बजारको विकास तर्फ जोड दिने, नेपाललाई अन्तर्राष्ट्रिय वित्तीय केन्द्रको रुपमा विकशित गर्न प्रयत्नशील रहने, वित्तीय बजार विकास तथा विस्तार गरी लगानीका अवसर बढाउँदै जाने, आन्तरिक ऋणलाई न्म्ए को वान्छित सीमाभित्र राखिने, मुद्रास्फीतिदरलाई न्यूनतम स्तरमा राख्दै बचत परिचालनलाई प्रोत्साहित गरिने, नेपाल अधिराज्यमा स्टक एक्स्चेन्ज सेवा विकास तथा विस्तार गर्ने, बिमा कम्पनीहरुको विकासमा जोड दिने, करको दर न्यूनतम गरी आर्थिक वृद्धिदर उच्च पार्ने, विभिन्न प्राथमिकतामा परेका र सरकारले प्रोत्साहित गर्न चाहेका (निर्यातमूलक उद्योग) आर्थिक क्रियाकलापहरुलाई कर छुट र अन्य सुविधाहरु दिने, साधारण खर्चमा ऋण रकम खर्च नगर्ने, विकास बजेटमा राजश्वको योगदान बढाउन प्रयास गर्ने ।

Compiled and collected by
Basudev Sharma Poudel(PHD)

मौद्रिक नीति

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

मौद्रिक नीति भनेको कुनै पनि मुलुकको सरकार वा मौद्रिक अधिकारीले मुलुकको राष्ट्रिय आवश्यकता अनुसार मुद्राप्रदाय, विनिमयदर, कर्जा प्रवाह, ब्याजदर र मूल्य सम्वन्धमा अपनाउने समष्टिगत नीति हो । अर्को शब्दमा देशको मुद्रा एवं साखको पूर्ति लाई एक निश्चित स्तरमा कायम राख्ने केन्द्रीय वैंकको नीति, मौद्रिक नीति (Monetary Policy) समष्टिगत आर्थिक नीति (Macro-economic Policy) का तीन प्रमुख औजारमध्ये एउटा औजार, यो नीति अर्थतन्त्रमा रहने वा आउने मुद्रासँग सम्बन्धित, अर्थतन्त्रको आवश्यकताअनुसार कुनै अर्थतन्त्रमा मुद्राको स्तर कति रहनुपर्दछ त्यस्तो मुद्रा अर्थतन्त्रको कुन–कुन क्षेत्रमा प्रवाहित वा उपयोग हुनुपर्दछ भनी निर्धारण गर्ने नीति नै मौद्रिक नीति, यस्तो मौद्रिक नीति देशको केन्द्रीय बैंकले तर्जुमा, कार्यान्वयन तथा आवश्यकता अनुसार फेरबदल गर्दछ, त्यसैले कुनै पनि देशको केन्द्रीय बैंकलाई मौद्रिक अधिकारी (Monetary authority) भनिन्छ ।, अधिक मुद्राप्रदाय (Money supply) ले अर्थतन्त्रमा मुद्रा स्फीति (Inflation) बढाउँछ । किनभने मुद्रा र मूल्यबीच सोझो र प्रभावकारी सम्बन्ध हुन्छ । यसरी अर्थतन्त्रमा मुद्राप्रदाय बढी भई मूल्य वृद्धि भएमा त्यसले ब्याज दर घटाउने, कर्जा अधिक मात्रामा बिस्तार हुने, मुलुकको मुद्रा कमजोर हुदै जाने अर्थात् मुद्राको अबमूल्यन हुँदै जाने, निर्यात घट्ने, आयात बढ्ने र अन्ततोगत्वा मुलुकको शोधनान्तर स्थिति प्रतिकूल हँुदै गई विदेशी मुद्राको संचिति रित्तिदै जाने हुन्छ । त्यसैगरी मुद्राप्रदाय आवश्यकताभन्दा न्यून भएमा अर्थतन्त्रमा मूल्य घट्ने (Deflation), ब्याज दर बढ्ने, कर्जा महङ्गो हुन गई संकुचन हुने, मुलुकको मुद्राको पुनर्मूल्यांकन (Revaluation) हुँदै जाने हुन्छ । फलस्वरूप निर्यात घट्ने, आयात बढ्ने र विदेशी मुद्राको संचिति घट्दै जाने हुन्छ । यसरी मुद्राप्रदाय आवश्यकताभन्दा घटी वा बढी जे भए पनि त्यसले अर्थतन्त्रको हित गर्दैन । त्यसैले यसलाई ठीक स्तरमा कायम राख्नुपर्ने हुन्छ । अर्थतन्त्रमा मुद्राकोस्तर कति कायम गर्ने र त्यस्तो मुद्रा के प्रयोजनमा उपयोग गर्ने भन्ने नीति नै मौद्रिक नीति हो ।

मौद्रिंक नीतिका उद्देश्यहरू
मुद्राको अर्थतन्त्रमा गहन भूमिका रहेको हुदा मौद्रिक नीतिका विविध खालका उद्देश्य प्राप्त गर्न विभिन्न मौद्रिक उपकरण मार्फत यस नीतिलाई कार्यान्वयनमा ल्याइन्छः

सामान्यतया मौद्रिक नीतिको उद्देश्यमा अर्थतन्त्रमा विदेशी विनिमयदर र आन्तरिक मूल्य स्थिरता कायम गरी विकास अनुकुल स्थायित्व सृजना गर्नु र अर्थतन्त्रको विकासलाई प्रोत्साहन गर्नु हो ।
मौद्रिक नीतिका उद्देश्य मुलुकको आर्थिक स्थिति, भौगोलिक वनावट, वैदेशिक ब्यापारको स्थिति, उद्योग तथा वाणिज्य क्षेत्रको अवस्था अनुरूप फरक–फरक हुन सक्छन् ।
सामान्यतया मौद्रिक नीतिका निम्न प्रमुख उद्देश्यहरू रहेको पाइन्छ ।

मूल्य स्थिरता वाह्य स्थिरता विनिमयदर स्थिरता आर्थिक विकास आर्थिक वृद्धि रोजगारी सृजना मौद्रिक नीतिले २ काम गर्छ । वर्तमान समयमा कति तरलता छ त्यसको पहिचान गर्ने घटी भए बढाउने, बढी भए Withdraw गर्ने, आबश्यक जतिमात्र कायम गर्ने ।

मौद्रिक उपकरणहरू

केन्द्रीय बैंकले विभिन्न प्रत्यक्ष र अप्रत्यक्ष मौद्रिक उपकरणहरू (Monetary Instruments) प्रयोग गरेर अर्थतन्त्रमा सृजना हुने मुद्रालाई आवश्यकतानुसार घटाउने र बढाउने गर्दछ ।
अर्थतन्त्रमा केन्द्रीय बैंकले मुद्रा प्रदाय घटाउन र बढाउन उपयोग गर्ने उपायहरू वा चाल्ने कदमहरूलाई मौद्रिक उपकरण भनिन्छ ।
निक्षेप र कर्जाको ब्याज दर निर्धारण, क्षेत्रगत कर्जाको सीमा निर्धारण, वाणिज्य बैंकहरूलाई केन्द्रीय बैंकले दिने कर्जा वा पुनर्कर्जाको ब्याज दर (Bank Rate) परिवर्तन, अनिवार्य नगद मौज्दात (Cash Reserve Ratio, CRR) को अनुपात परिवर्तन, अनिवार्य तरलता मौज्दात (Statutory Liquidity Ratio, SLR) को अनुपात परिवर्तन, खुला बजार कारोवार (Open Market Operations) आदि केन्द्रीय बैंकले मुद्रा नियन्त्रण गर्न प्रयोग गर्ने प्रमुख र प्रचलित उपकरणहरू हुन् ।
केन्द्रीय बैंकले वाणिज्य बैंकहरूलाई तरलता वा ब्याजदरका सम्बन्धमा कुनै लिखित निर्देशन जारी नगरी नैतिक दवावको माध्यमबाट पनि ती कुराहरूमा आफूले चाहेको परिवर्तन गराउन सक्तछ । यो पनि मौद्रिक उपकरण नै हो जसलाई Moral Suasion भनिन्छ ।
अर्थतन्त्रमा मुद्रा प्रदाय बढी भई विकृतिहरू देखा परेको अवस्थामा केन्द्रीय बैंकले बैंक दर तथा अनुपातहरू बढाउँछ । ब्याज दर वृद्धिले मुद्रालाई महङ्गो पार्दछ, निक्षेप संकलन बढाउँछ र कर्जा बिस्तारलाई नियन्त्रण गर्दछ भने अनुपातहरूको वृद्धिले बाणिज्य वैंकहरूसँग रहेको तरलतालाई उपयोग गर्न नपाउने वा कर्जा विस्तार गर्न नपाउने गरी घटाउँछ । यी सबै उपायहरूको उपयोग गरेमा अर्थतन्त्रमा तरलता घट्न जान्छ ।
यसरी केन्द्रीय वैंकले अर्थतन्त्रमा मुद्रा प्रदाय घटाउन ब्याज दरहरू र नगद तथा तरलता अनुपातहरू बढायो भने त्यस्तो मौद्रिक नीतिलाई संकूचनकारी (Contractionary) मौद्रिक नीति भनिन्छ भने ब्याज दरहरू र नगद तथा तरलता अनुपातहरू घटायो भने त्यस्तो मौद्रिक नीतिलाई विस्तारकारी (Expansionary) मौद्रिक नीति भनिन्छ ।
खुला बजार कारोवार (Open Market Operations,OMO) अर्थतन्त्रको मुद्रा नियन्त्रण गर्ने अर्को प्रभावकारी मौद्रिक उपकरण हो ।
यस्तो कारोबारमा निर्धारण हुने ब्याज दरले अर्थतन्त्रको मुद्राप्रदाय वा तरलताको स्थितिको बारेमा जानकारी दिन्छ

यो कारोवारमा निर्धारण हुने ब्याजदर क्रमिक रूपमा घट्दै गयो भने त्यसबाट अर्थतन्त्रमा अधिक तरलता छ भन्ने बुझिन्छ र त्यस्लाई केन्द्रीय बैंकले घटाउन चाहन्छ भने उसले खुला बजार कारोबार मार्फत बिक्री हुने सरकारी ट्रेजरी विलको परिमाण बढाई अर्थतन्त्रबाट बढी से बढी तरलता प्रशोचन (Mop Up) गर्दछ । त्यसैगरी यदि यो कारोवारले बढी ब्याज दर निर्धारण गर्दछ वा बढी ब्याज दर पाए मात्र ट्रेजरी बिल खरिद गर्न बाणिज्य वैंकहरू तयार देखिए भने केन्द्रीय वैंकले अर्थतन्त्रमा तरलता कम छ भन्ने बुझ्दछ र उसले अर्थतन्त्रमा बढी तरलता पठाउन (Inject) बढी ब्याज दरमा ट्रेजरी बिलहरू पुनर्खरिद (Repurchase, Repo) गर्दछ वा कम परिमाणमा ट्रेजरी विल बिक्री गर्दछ । यस्तो कारोबारलाई ट्रेजरी विलको दोस्रो बजार (secondary Market) भनिन्छ । नेपालमा यस्तो कारोवार नेपाल राष्ट्र बैंक, राष्ट्र ऋण विभागले २०५० साल देखि सञ्चालन गर्दै आएको छ । यो कारोवार प्रत्येक हप्ताको सोमबारका दिन गर्ने परम्परा छ जसमा प्रत्येक वाणिज्य वैंकहरू सहभागी हुने गर्दछन् । त्यसैले नेपाल राष्ट्र बैंकको लागि मुद्रा नियन्त्रणको यो सशक्त उपकरण भएको छ ।

Compiled and collected by
Basudev Sharma Poudel(PHD)

High Power Money

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000

The total amount of currency held by the public, as well as cash in the vaults of financial institutions, and bank deposits at the Federal Reserve. The Federal Reserve Bank maintains close Control over the amount of high powered money that can influence its monetary policy decisions. also called the monetary base.

In simple terms High Powered Money (HPM) is the net or total liability of the monetary authority of any nation……in Nepal it is the liability of NRB.

It is simply the sum of all currency in circulation with the people of the country, cash kept in the commercial bank vaults along with the deposits of govt. of the country and commercial banks. The term liability basically means that when people/govt/commercial banks produce the currency/claims….the NRB has to pay value equal to currency/claim.

The NRB uses this H.P.M. for regulation of money supply in the economy. By controlling the money supply NRB regulates (i.e tries to regulate) the inflation in eco.

NRB uses the H.P.M for the process of money creation. Money creation will increase the supply of money in eco.

When NRB needs to pump extra money in eco. it injects a certain amount of high powered money (Say H) into the economy (by the purchase of govt bonds/assets etc).

NRB may purchase government bond worth 500 million. Then, total money supply will not only increase by 500 million but it goes on multiplying.

This money injected into the economy through purchase of government bonds and so on will increase the total money supply. But the actual amount increase will not be determined

This money injected into the economy through purchase of government bonds and so on will increase the total money supply.
But the actual amount increase will not be determined

NRB may purchase government bond worth 500 million. Then, total money supply will not only increase by 500 million but it goes on multiplying

This increased addition of money supply (over the injected value of H) is due to the factor called Money Multiplier!

Mathematical relationship between the monetary base and money supply of an economy. It explains the increase in the amount of cash in circulation generated by the banks’ ability to lend money out of their depositors’ funds. When a bank makes a loan, it ‘creates’ money because the loan becomes a new deposit from which the borrower can withdraw cash to spend. This money-creating power is based on the fractional reserve system under which banks are required to keep at hand only a portion (between 10 to 15 percent, typically 12 percent) of the depositors’ funds. The rest may be converted into loans, thereby increasing the available cash by a factor that is a multiple of the initial deposit.

Monetary multiplier means the influence a central bank has over the money supply by altering the required banking reserve rate.

Compiled and collected by
Krishna Prasad Aryal
Assistant Branch Manager
Rastriya Banijya Bank
Branch Office Parasi

Banking Notes

Banking Notes — Sun, 08 Apr 2012 05:41:42 +0000