PART 1
Great Britain
o Central bank of the UK
o Founded in 1694
o Gained independence in 1997
o Govt's banker and the Banker's Banker
o Has 2 purposes ? monetary stability and financial stability
o Sets the UK's interest rates
Switzerland
o The Swiss National Bank conducts the country's monetary policy as an independent central bank. It is obliged by Constitution and statute to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability, while taking due account of economic developments. In so doing, it creates an appropriate environment for economic growth.
o Price stability is an important condition for growth and prosperity. Inflation and deflation are inhibiting factors for the decisions of consumers and producers; they disrupt economic activity and put the economically weak at a disadvantage. The National Bank equates price stability with a rise in the national consumer price index of less than 2% per annum. Monetary policy decisions are made on the basis of an inflation forecast and implemented by steering the three-month Libor.
o The National Bank is entrusted with the note-issuing privilege. It supplies the economy with banknotes that meet high standards with respect to quality and security. It is also charged by the Confederation with the task of coin distribution.
o in the field of cashless payment transactions, the National Bank provides services for high-value payments between banks. These are settled in the Swiss Interbank Clearing (SIC) system via sight deposit accounts hel ...