Friday, March 7, 2014

The emergence of central banks

Abu banks, the parent bank, Bank of the banks, the central bank, are all names for the same banking institution owned by the state, which has a legal capacity derived from the state to impose its control fully to all banks and other financial institutions, the state, the Central Bank of the country of the most important financial institutions, the mainstay or (column Tent) of the monetary and financial structure in all countries of the world, there is no state in the modern era no matter how small or lagged only by the Bank to the banks this was the banking system in the entire state. Central Bank is responsible to the implementation of monetary and fiscal policies of the government in order to achieve balance and financial stability in the state, he plays the most important role in the implementation of economic policy in the state, when originated central banks, and what are its functions in some detail, what are the means used by the central bank to play its role , and then finally the most important recent developments that have occurred on the central bank.

When the idea arose Central Bank
There is no specific date refers to the emergence of central banks in the countries of the world, but if we consider the history of turning some of the commercial banks to the central banks is the history of its inception, most central banks originated initially be acting trademark owned by the private sector and with the economic development and financial communities and the emergence of many of the problems associated greedily capital by the other hand, fraud and deception operations with no supervisory authority to address those processes of fraud that usually paid for vulnerable citizens in society. Hence arose the idea of ​​the necessity of a public entity owned by the whole community or the government, which in order to be represented by him control the financial operations of the state to protection of the financial system in the public interest for all members of the community.

At a later stage after the emergence of the commercial banks a period of time rather long, central banks have arisen because of the need for a central bank to converge in which all parties other bank in the country. The word of the Central Bank were not known before the beginning of the twentieth century, but it appeared most important functions of the central bank in the commercial banks that have had already appearing historically, and became the de development center for monetary system and banking unique privilege version of cash and then turns later to what is known as the central banks.
 
Below we will talk briefly about the oldest central banks in the world, look beginnings and passed by the developments over the years, one of the oldest and most important of these central banks in the world is the Bank of Sweden known as "sevrige riks banque" which was founded in the year 1656 AD, which was founded as a commercial bank owned by the private sector, after a ten-year-old turned into a state bank in 1667, has evolved Bank later even became a central bank, it was the Bank of Sweden to issue paper money legal systems even before the issuance of the law in 1809, who spent a monopoly on issuing those currencies for this Bank. It should be noted that the leaders of the bank to be selected and employed by the state, they are government employees belonging to howl, where the King of Sweden himself chooses the head of the bank or purses and then the Legislative Council, Sweden, choosing the rest of the six directors.

 Of the oldest central banks in the world are also the Bank of England albeit under another where a private bank since its inception follows the private sector until the year 1946, where it was nationalized included ownership to the British government, when it emerged the bank? Bank of England was established in 1604 as a bank owned by a private group of wealthy Britons shared in underwriting capital and who were of the relevant British government and enjoy some influence enjoyed by the most wealthy people in the whole world. It was established that the bank in order to provide a loan to the British government to assist it in its wars of State efforts to expand its colonies around the world at the time, so the wealthy always crush the poor and vulnerable and help from crushing them because their own interest and one which is more wealth and affluence and wealth, forgetting they do not have to eat more which bear their stomachs, they cannot live in the most important of the palace is expensive, and eventually return to their origin, where created by God. Returning to the dirt .. Dust returned to dust .. They shall be turned to dust also, does not benefit them that their wealth while the Creator asking all that wealth? Where-earned? And in what disbursed? How was the capital of the Bank of England when it was founded? We have stated that the Bank of England was established at that time in order to lend to the British government the amount of 1.2 million pounds was also this is all the bank's capital, a large sum at the time.

 The British government to reward the Bank of England, which loaned each capital, granted him the government rights issue paper money legal in the year 1708 and remained in control of the issuance of money for many years, more than a century and a quarter, in the year 1826, the British government granting concession issuing paper money to another group of banks, which was established as joint stock and spread far apart in many areas, not only to London as it was before.

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