Bài giảng tiền tệ và ngân hàng

Đây là bài giảng của thầy Dr Karel Jansen

COURSE MONEY AND BANKING

2006 Lecturer: Dr Karel Jansen

Part I The Banking System:

• Financial Markets

• Financial Intermediation and Development

• Banking as Risk Management

• Financial Fragility and Financial Crisis

•

Part II Money in the economy: monetary theory and monetary policy

• Money Supply and Money Demand

• Monetary Theory: Money and the Real Sector

• Monetary Policy

Part III Financial development and banking in Vietnam

• The Banking System during Transition in Viet Nam

Some definitions

• Money = token of value which is generally acceptable in

the purchase and sale of goods, services and assets and the settlement of debts

• Financial markets = markets in which banks and other

financial institutions provide a variety of financial

services and products which facilitate the production,

distribution and consumption of goods and services as well as the distribution of income and, crucially,

entitlements to income

Some definitions (contd)

• Financial market innovation = the development of new

services and products and new technologies and

processes for the delivery of these new services and

products

• Financial market regulation = the statutory constraints

on the activities of financial market institutions

• Monetary policy = policies designed to influence

macroeconomic aggregates by influencing the quantity

or price of money in the economy

• Introduction to certain technical details technical details pertaining to money, financial markets, institutions, instruments,

developments and policies

• Appreciation of different theoretical perspectives

pertaining to the nature and behaviour nature and behaviour of financial

markets and determination determination of prices in these markets

• Understanding the conduct and effectiveness of

monetary policy in the context of macroeconomic

management and policy issues pertaining to the

development and regulation regulation of financial markets

Money: what is it?

Money = value par excellance

Exchangeable with all;

• Goods and services

• Assets

Money: historical development

• Important consumables, including live animals

• Various luxury items – pelts, hides,

cloth, trinkets, etc

• Metals

• Paper

• Electronic money

Money: measures of money

• Coins and notes (M0)

• M0 + demand deposits (M1)

• M1 + savings and fixed deposits (M2)

• M2 + deposits with other deposit taking institutions (M3)

• M3 plus short-term government debt

instruments (Mx), etc

Financial markets: overview

Financial markets

Money market (1)

Capital market (2)(3)

Foreign exchange market (4)

Financial derivatives markets (5)

Financial markets: the

Money markets

money markets

retail other wholesale

•transactions between financial institutions

•large sums of money

•fin institutions + govt.

Wholesale money market

Wholesale

money

market

Short-term borrowing and lending (1)

Interbank Call

Short term debt (3)(4)

TB market (5)(6)

Primary (7)(8)

Secondary (9)

Repo (2)

Retail money market

Retail

money

market

Commercial banks (1)

Borrowing and lending Investment in financial securities (3)

Other deposit taking

institutions

Savings institutions (4) Mortgage institutions (5) Off-balance sheet activities (2)

Financial markets intermediate

Financial markets intermediate between those with surplus funds and those with shortages

of fund.

Financial intermediation can be direct, e.g on

the stock market between the firm that

issues the shares and the investor that buys

the shares, or indirect, i.e through a

BANKING AS FINANCIAL INTERMEDIATION: an

accounting framework

CENTRAL BANK (CB)

MONEY BANKS (MB)

CONSOLIDATED STATEMENT OF MONETARY SYSTEM

assets liabilities

foreign reserves FA currency in circulation CUp government bonds B demand deposits DD loans to govt Lg saving deposits SD loans to priv sector Lp borrowing abroad Lmb

PRIVATE SECTOR (P)

Physical capital K p Bank credit DC p Government bonds B p Borrowing abroad FL p Currency holdings CU

Deposits DEP

Foreign financial assets FA p Net Wealth private sector WTH p

Balance sheet private sector

GOVERNMENT (G)

Balance sheet government

Asset-Liability Matrix

Wealth Net

+ s

Liabilitie

=



Private Government Central bank Money banks World Wealth Total

liabilities Private DC p FL p WTH p

Asset-Liability Matrix leads to

Flow of Funds account

Wealth Net

+ s

+ s Liabilitie

=





Determination of money market

Wholesale money market: Short

Supply

Levels of income, liquidity, returns on similar money

market assets, uncertainty (5)

Fiscal/Monetary policy and balance

of payment (7)

Retail money market: Short

Cost of funds

Inflation, level of economic activity (2) Fixed (3)

variable

Deposit rates, cost

of money market borrowing (4)

Fixed (6)

Savings (7)

Financial market behaviour,

• Behaviour of capital markets

• Determination of yields in

capital markets

Capital markets

Capital markets (1-4)

• Medium and term credit