The Role And Powers Of The Central Bank Finance Essay - Free Essay Example

Sample details Pages: 4 Words: 1254 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The Central Bank of Malaysia like other countries does have the same role. Malaysia is a place or country which it has a various financial institutions and banks operating the states managing the about the monetary. Under the Central Bank of Malaysia 2009 section 4 state that the bank might be the Central Bank of the Malaysia. Don’t waste time! Our writers will create an original "The Role And Powers Of The Central Bank Finance Essay" essay for you Create order Its had been established on 24 January 1959. The Banking Ordinance 1958 was provided a licensing and regulation on the banking business also came into strength in the Federation of Malaya. Under the Central Bank of Malaya Ordinance 1958 (CBO), it was provides the legal framework for the Central Bank. The legal framework includes the objectives of Central Bank of Malaysia whereas are to promote a monetary stability and a sound of financial structure. Under section 5 (1), the principle objectives of the banks might be promote on monetary stability and financial stability favourable to the sustainable growth on the Malaysia economy. The monetary stability is based on the value of stability on the Malaysian currency. We do have to ensure that the inflation is always remaining in low level and stable by always ensuring that on the price stability. Central Bank of Malaysia acts as a banker and likes a financial adviser. Also, BNM include issue a currency in Malaysia and by keep seeking a s afeguarding on the value of the currency. Besides that, it does regulate and supervise financial institutions and promote a sound, progressive and inclusive a financial system. In additions, the Central Bank of Malaysia provided to provide oversight over the money and on the foreign exchange markets, to exercise oversight over the payment systems and to introduce on an exchange rate regime reliable with the fundamentals of the economy. Discussion on the Central Bank of Malaysia (BNM) Under the Banking Financial Institutions Act 1989 (BAFIA), The Central Bank of Malaysia (Bank Negara Malaysia) main role is to regulates and supervise all the banking related to the activities in Malaysia. Countries with effectiveness on supervision may enforce less restriction. Supervision are includes the licensing and approval be given in the field of the regulated business. Supervision does also give an authorization of institutions in the regulated business, issuing rules stipulated in law and drafting guidelines for the conduct of regulated business and it would be performing actual tasks on an ongoing basis under the supervision. The bank get an approval by the Minister to make a regulations so that it can have to brings out of the objects and directly also on the purposes of the act under section 94 (1). According to the Shleifer Vishny (1998); Djankov et al (2002) and Quintyn Taylor (2002), with great supervisors might be use their powers to brings a benefit preferred constituents and extract bribes. One of the reasons that the banking regulation and supervision are necessary whereby the levels of the moral hazard do can equalize. Almost in all the countries, banks are protected by the government safety nets. Safety nets basically include a lending-of-fast resort facility and or deposit insurance. Banking regulation and supervision must be substitute the market discipline removed by the safety nets. Safety nets can produce markets that will results by inflating banks incentives to take a risk. The banking crises over the 1980s and 1990s led a large number of countries to rethink their safety net arrangements and consider for example introducing explicit deposit protection schemes by Garcia (1999), Demiguc- Kunt Kane (2002). The supervisory authority for banks in Malaysia is based on the Central Bank of Malaysia (BNM). It was undertakes the central banks functions including the duty to promote a sound financial structure in the country. As th e nationà ¢ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢s regulatory authority, the fundamental roles of The Central Banks of Malaysia is to develop a sound on a banking system that it will give a feedback to the need on the economy and on the society. The bank do conferred powers under the Central Bank of Malaysia Act 2009 and the written laws are set out to the purposes on promoting on financial stability. The objective of financial stability also through by the development and strengthening of institutions and system infrastructure which it does not success only on the formulation with a strong legal, regulatory and supervisory. The Central Bank of Malaysia (BNM) does also has been entrusted to do a regulation and to develop on the insurance sector so that it can be more effectively mobilize under the long term savings and allow in with a various of insurance products and at the same time, it do protecting the interest of the policy owners. The Islamic Bank ing Act 1983 (IBA) provides a powers for the supervision and control on the Islamic Banks by the Central Bank of Malaysia (BNM). Any of the Islamic Banks that wish to be put up must be under a regulation and control by the Central Bank of Malaysia (BNM). Under section 22 (1), by the promoting on monetary stability, the Bank might pursue a monetary policy which it favourable the interest of the country by keep on remain of the price stability giving regarding to the developments in the economy. Thus, it will ensure that the monetary gain from the operations would be in exactly consistent to meet with the objectives made on monetary policy. The new Central Bank of Malaysia Act 2009 came into force and it was enable the Central Bank (BNM) to be more effectively manage on the emerging risks and challenges to present its task and takes obligations as the nationà ¢ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢s central bank. BNM also keep their relationship with other c ountries of the supervisors to make sure that the developments is overseas especially for those the countries whereas it has a banking existence and that would not brings harm to the stability of the financial system in Malaysia. Under the BAFIA, the supervisory powers of the BNM provided that no banking business can be conducted in the country by any company without a banking licence under the section 4. As result, under the section 25 (1), there are no person shall receive, take or accept the deposits except it is under and is in accordance with a valid licence whereby granted under the section 6 (4), that ahead on receiving an appliance and the commendation to carry on that banking business, finance company, merchant banking or a discount house business. Next, the powers to supervise and control licensed institutions, BNM is empowered to conduct regular and special inspections into the books and accounts of each bank. The inspections are not cover only for the bank and its bra nch offices in Malaysia but it is also cover for the domestic bank. The inspections that carried out in regularly by the BNM may shape the backbone of the system of supervision over the licensed banks. BAFIA 1989 provided in Part X do examine that without any of earlier notice, books or documents, accounts and any transactions on the licensed institution and its offices inside Malaysia. Also, the minister have the authority to order the Bank to make a determination of the books or to any documents, accounts and any transactions of any licensed institution to its inside or outside office of the Malaysia. Once the Minister found out or suspects that the licensed institution holders is doing a business in likely to be in the detrimental to the depositors or creditors, also that has insufficient of the assets that need to cover the liabilities or any contravening provision of the ACT or to the Central Bank of Malaysia ACT 1958, is stated under section 70 BAFIA 1989. Financial markets have an effect on the nations.

African American Economy African Americans - 909 Words

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A Beautiful Piece Of Chalk Analogy Free Essays

A Beautiful Piece Of Chalk Analogy, contradiction, and irony are some of the important rhetorical methods that many authors use to portray their ideas. In â€Å"A Piece of Chalk† (1905), G. K. We will write a custom essay sample on A Beautiful Piece Of Chalk Analogy or any similar topic only for you Order Now Chesterton demonstrates his adept writing ability in using those methods as a means of appeal to convey that everything is beautiful and valuable in its own way. His piece of writing not only exemplifies the use of contradiction, humor, analogy and metaphor, but also succeeds in using relevant support and evidence. Initially, the first rhetorical technique that Chesterton uses is contradiction. We sometimes hold prejudiced views, along with implicitly wrong definitions, towards the world. The author first states the falsifications, and then contradicts them by describing the simple, pure, yet undeniable beauty of those notions. Chesterton says about the white color, â€Å"It is not a mere absence of color; it is a shining and affirmative thing, as fierce as red, as definite as black† (133). In the process, the author is able to make his points emphasized. Moreover, he notes in his essay that, â€Å"[v]irtue is not the absence of vices or the avoidance of moral dangers; virtue is a vivid and separate thing, like pain or a particular smell. Mercy does not mean not being cruel, or sparing people revenge or punishment; it means a plain and positive thing like the sun, which one has either seen or not seen† (Chesterton, 133). He continuously talks about the notion that people usually evasively understand as trivial and trite, affirming their grace and charm. Beside contradiction, humor also effectively contributes to his narration. In the first paragraph, Chesterton talks about the conversation between the narrator and the old woman. He came up to look for brown paper for his drawing, but the woman insisted on thinking that he wanted to wrap up parcels. Even when she realized his primary purpose, this kitchen owner still could not capture the value of brown paper to the painter (Chesterton 132). The author also uses humorous phrases such as â€Å"rationale of the existence of brown paper,† â€Å"beyond my mental capacity,† and â€Å"she offered to overwhelm me with note-paper† (Chesterton 132). He dwells on the misunderstanding of the woman, as well as the misconception that many people hold about the little but useful materials around them. In addition, Chesterton says in the last paragraph that, â€Å"Imagine a man in the Sahara regretting that he had no sand for his hour-glass. Imagine a gentleman in mid-ocean wishing that he had brought some salt water with him for his chemical experiments† (134). The narrator states two examples, where people hilariously trick themselves in two simple and obvious situations, to ridicule himself of something that he has just realized to be similar. Added to an effective use of contradiction and humor, Chesterton’s â€Å"A Piece of Chalk† is an exemplary use of analogy and metaphor. He talks about his attitude towards brown paper, â€Å"I then tried to explain the rather delicate logical shade, that I not only liked brown paper, but liked the quality of brownness in paper, just as I like the quality of brownness in October woods, or in beer† (Chesterton, 132). One cannot judge things by their mere look or use, but has to really look into them. Their essences, which were deliberately brought by their creators, are just unique as the passion and devotion of their creators. Similarly, the author says about the old poets, â€Å"They preferred writing about great men to writing about great hills; but they sat on the great hills to write it. They gave out much less about Nature, but they drank in, perhaps, much more. They painted the white robes of their holy virgins with the blinding snow, at which they had stared all day† (133). The old poets not only care and appreciate nature, but also capture it successfully in their own works. In addition, according to his last paragraph, â€Å"[a]nd yet, without any white, my absurd little pictures would be as pointless as the world would be if there were no good people in it† (134), he compares white chalks with good people. And as he talks about using white chalks in painting, the readers understand the values and importance of the existence of good people in this world. In the last sentences of the essay, he says, â€Å"I was sitting on an immense warehouse of white chalk. The landscape was made entirely of white chalk. White chalk was piled more miles until it met the sky† (134). The use of metaphor here enhances his point. By emphasizing how much white chalk is around him, Chesterton skillfully introduces to the readers a seemingly obvious fact that good people are easy to find in the Southern England. Ultimately, with â€Å"A Piece of Chalk,† Chesterton has proven that he is a master of rhetorical techniques. He develops his paper by using different rhetorical methods alternatively and altogether. The story flows peacefully and naturally, yet does not turn boring, because every sentence is a joy to read. Work Cited Chesterton, G. K. â€Å"A Piece of Chalk. † 75 Readings across the Curriculum. Ed. Chris Anson. New York: McGraw-Hill, 2006: 132-4. Print. How to cite A Beautiful Piece Of Chalk Analogy, Essays