2000 | OriginalPaper | Buchkapitel
Central Banks, Commercial Banks and Repurchase Agreements
verfasst von : Dimitris N. Chorafas
Erschienen in: New Regulation of the Financial Industry
Verlag: Palgrave Macmillan UK
Enthalten in: Professional Book Archive
Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.
Wählen Sie Textabschnitte aus um mit Künstlicher Intelligenz passenden Patente zu finden. powered by
Markieren Sie Textabschnitte, um KI-gestützt weitere passende Inhalte zu finden. powered by
The management of the monetary base and of the velocity of circulation of money is a major function of central banks (see D.N. Chorafas, The Money Magnet Regulating International Finance and Analyzing Money Flows, Euro-money Books, London, 1997), sometimes assisted through repurchase agreements (repos). An example of the use of repos for monetary policy reasons is provided by the Bundesbank and the ECB whose main monetary instrument is repurchase rate. The ECB asks the national central banks to conduct open-market operations to keep interest rates within its desired range, with: the ceiling being the rate which banks can borrow overnight from the central bank; andthe floor being the rate at which banks with surplus cash deposit overnight funds.