2020: a Good Year for Polymer Banknotes Competition Creates Energy and Change
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Central Banks As Economic Institutions: a Roundtable Debate
Central Banks as Economic Institutions Roundtable Debate∗ ∗∗ Willem H. Buiter Professor of European Political Economy European Institute London School of Economics and Political Science, Universiteit van Amsterdam, NBER and CEPR ∗ These notes are based on my contribution to the Roundtable Central Banks as Economic Institutions, held in Paris at the headquarters of the Saint-Gobain Group, on November 30 and December 1, 2006, at the Conference Central Banks as Economic Institutions, organised by the Cournot Centre for Economic Studies. I would like to thank the Centre Cournot and the organiser for their invitation and their hospitality. ∗∗ © Willem H. Buiter, 2007 Introduction As my starting contribution to this Roundtable debate, I shall address three issues: 1. Some implications of globalisation for central banking. 2. The objectives of the central bank. 3. Operational independence and accountability and the case for the minimalist central bank.1 1. Globalisation and central banking In a world with floating exchange rates, international coordination between national central banks (NCBs) for normal (non- crisis) monetary policy purposes is, for all practical purposes, redundant. Co-ordination between NCBs could make sense if monetary policy were an effective instrument for fine-tuning the business cycle. However, the lingering belief in the effectiveness of monetary policy as a cyclical stabilisation instrument is, in my view, evidence of the ‘fine tuning illusion’ or ‘fine tuning fallacy’ at work. In a world with unrestricted international -
Mortgage-Backed Securities & Collateralized Mortgage Obligations
Mortgage-backed Securities & Collateralized Mortgage Obligations: Prudent CRA INVESTMENT Opportunities by Andrew Kelman,Director, National Business Development M Securities Sales and Trading Group, Freddie Mac Mortgage-backed securities (MBS) have Here is how MBSs work. Lenders because of their stronger guarantees, become a popular vehicle for finan- originate mortgages and provide better liquidity and more favorable cial institutions looking for investment groups of similar mortgage loans to capital treatment. Accordingly, this opportunities in their communities. organizations like Freddie Mac and article will focus on agency MBSs. CRA officers and bank investment of- Fannie Mae, which then securitize The agency MBS issuer or servicer ficers appreciate the return and safety them. Originators use the cash they collects monthly payments from that MBSs provide and they are widely receive to provide additional mort- homeowners and “passes through” the available compared to other qualified gages in their communities. The re- principal and interest to investors. investments. sulting MBSs carry a guarantee of Thus, these pools are known as mort- Mortgage securities play a crucial timely payment of principal and inter- gage pass-throughs or participation role in housing finance in the U.S., est to the investor and are further certificates (PCs). Most MBSs are making financing available to home backed by the mortgaged properties backed by 30-year fixed-rate mort- buyers at lower costs and ensuring that themselves. Ginnie Mae securities are gages, but they can also be backed by funds are available throughout the backed by the full faith and credit of shorter-term fixed-rate mortgages or country. The MBS market is enormous the U.S. -
Hedging Credit Index Tranches Investigating Versions of the Standard Model Christopher C
Hedging credit index tranches Investigating versions of the standard model Christopher C. Finger chris.fi[email protected] Risk Management Subtle company introduction www.riskmetrics.com Risk Management 22 Motivation A standard model for credit index tranches exists. It is commonly acknowledged that the common model is flawed. Most of the focus is on the static flaw: the failure to calibrate to all tranches on a single day with a single model parameter. But these are liquid derivatives. Models are not used for absolute pricing, but for relative value and hedging. We will focus on the dynamic flaws of the model. www.riskmetrics.com Risk Management 32 Outline 1 Standard credit derivative products 2 Standard models, conventions and abuses 3 Data and calibration 4 Testing hedging strategies 5 Conclusions www.riskmetrics.com Risk Management 42 Standard products Single-name credit default swaps Contract written on a set of reference obligations issued by one firm Protection seller compensates for losses (par less recovery) in the event of a default. Protection buyer pays a periodic premium (spread) on the notional amount being protected. Quoting is on fair spread, that is, spread that makes a contract have zero upfront value at inception. www.riskmetrics.com Risk Management 52 Standard products Credit default swap indices (CDX, iTraxx) Contract is essentially a portfolio of (125, for our purposes) equally weighted CDS on a standard basket of firms. Protection seller compensates for losses (par less recovery) in the event of a default. Protection buyer pays a periodic premium (spread) on the remaining notional amount being protected. New contracts (series) are introduced every six months. -
Polymer Banknotes
Polymer banknotes Environmental impact of paper and polymer banknotes The Bank of England is responsible for maintaining confidence in the currency, by meeting demand with good quality, genuine banknotes that the public can use with confidence. To support this objective, for the past three years the Bank has been conducting a research project assessing the substrates (materials) that banknotes are printed on with a view to further enhancing counterfeit resilience and increasing the quality of banknotes in circulation. In particular, the Bank has been reviewing the relative merits of printing banknotes on polymer compared with cotton paper. Environmental Study As part of this research, we commissioned an independent study from PE International to assess the environmental impact of the Bank’s current paper banknotes and polymer banknotes. The study followed a Life Cycle Assessment (LCA), which looked at all the stages that a banknote encounters through its life: from first production of raw materials, manufacturing of the banknote materials, printing, distribution into circulation, recirculation (dispensing by ATMs, sorting at regional cash centres) and final return to the Bank of England for destruction and treatment of the waste. The study considered the impact of each stage of the banknote life cycle on 7 environmental indicators, including global warming potential, water and energy usage, ozone creation and environmental toxicity. Polymer showed benefits over cotton paper for all the main phases of the life cycle. For the majority (six from seven) of the indicators covered by the study it has been shown that polymer banknotes have a lower environmental impact than paper banknotes. -
Gladstone and the Bank of England: a Study in Mid-Victorian Finance, 1833-1866
GLADSTONE AND THE BANK OF ENGLAND: A STUDY IN MID-VICTORIAN FINANCE, 1833-1866 Patricia Caernarv en-Smith, B.A. Thesis Prepared for the Degree of MASTER OF ARTS UNIVERSITY OF NORTH TEXAS May 2007 APPROVED: Denis Paz, Major Professor Adrian Lewis, Committee Member and Chair of the Department of History Laura Stern, Committee Member Sandra L. Terrell, Dean of the Robert B. Toulouse School of Graduate Studies Caernarven-Smith, Patricia. Gladstone and the Bank of England: A Study in Mid- Victorian Finance, 1833-1866. Master of Arts (History), May 2007, 378 pp., 11 tables, bibliography, 275 titles. The topic of this thesis is the confrontations between William Gladstone and the Bank of England. These confrontations have remained a mystery to authors who noted them, but have generally been ignored by others. This thesis demonstrates that Gladstone’s measures taken against the Bank were reasonable, intelligent, and important for the development of nineteenth-century British government finance. To accomplish this task, this thesis refutes the opinions of three twentieth-century authors who have claimed that many of Gladstone’s measures, as well as his reading, were irrational, ridiculous, and impolitic. My primary sources include the Gladstone Diaries, with special attention to a little-used source, Volume 14, the indexes to the Diaries. The day-to-day Diaries and the indexes show how much Gladstone read about financial matters, and suggest that his actions were based to a large extent upon his reading. In addition, I have used Hansard’s Parliamentary Debates and nineteenth-century periodicals and books on banking and finance to understand the political and economic debates of the time. -
Mauritius's Constitution of 1968 with Amendments Through 2016
PDF generated: 26 Aug 2021, 16:39 constituteproject.org Mauritius's Constitution of 1968 with Amendments through 2016 This complete constitution has been generated from excerpts of texts from the repository of the Comparative Constitutions Project, and distributed on constituteproject.org. constituteproject.org PDF generated: 26 Aug 2021, 16:39 Table of contents CHAPTER I: THE STATE AND THE CONSTITUTION . 7 1. The State . 7 2. Constitution is supreme law . 7 CHAPTER II: PROTECTION OF FUNDAMENTAL RIGHTS AND FREEDOMS OF THE INDIVIDUAL . 7 3. Fundamental rights and freedoms of the individual . 7 4. Protection of right to life . 7 5. Protection of right to personal liberty . 8 6. Protection from slavery and forced labour . 10 7. Protection from inhuman treatment . 11 8. Protection from deprivation of property . 11 9. Protection for privacy of home and other property . 14 10. Provisions to secure protection of law . 15 11. Protection of freedom of conscience . 17 12. Protection of freedom of expression . 17 13. Protection of freedom of assembly and association . 18 14. Protection of freedom to establish schools . 18 15. Protection of freedom of movement . 19 16. Protection from discrimination . 20 17. Enforcement of protective provisions . 21 17A. Payment or retiring allowances to Members . 22 18. Derogations from fundamental rights and freedoms under emergency powers . 22 19. Interpretation and savings . 23 CHAPTER III: CITIZENSHIP . 25 20. Persons who became citizens on 12 March 1968 . 25 21. Persons entitled to be registered as citizens . 25 22. Persons born in Mauritius after 11 March 1968 . 26 23. Persons born outside Mauritius after 11 March 1968 . -
Bank of England Notes: the Switch to Polymer 23
Topical articles Bank of England notes: the switch to polymer 23 Bank of England notes: the switch to polymer By Ronan McClintock and Roy Whymark of the Bank’s Notes Directorate. (1) • The Bank of England is responsible for maintaining confidence in banknotes. • In meeting its banknote issuance responsibilities, the Bank aims to fully exploit innovation. The next £5, £10 and £20 banknotes will be printed on a polymer material. • The switch to polymer will deliver banknotes that are more secure and better quality, and will support confidence in banknotes in the years ahead. Overview The issuance of banknotes is probably the Bank of England’s durable, meaning they will last at least two and a half times most recognisable function. Having first issued banknotes longer than cotton-paper banknotes. And third, the new shortly after it was founded in 1694, the Bank is one of the banknotes will be cleaner, and the public will enjoy the longest-standing issuers of physical money in the world. benefit of better-quality banknotes in their pockets. The Bank of England’s note issuance objectives are to: The new polymer £5 banknote, featuring (i) meet demand for banknotes in the quantities and Sir Winston Churchill, will be unveiled on 2 June, and will denominations required by the public; and (ii) maintain enter circulation in September 2016. Around a year later, confidence in banknotes. The key to maintaining confidence the Bank will launch a new £10 banknote featuring is the distribution of banknotes that are difficult to Jane Austen. A new £20 banknote, featuring a character counterfeit and easy to authenticate. -
Polymer Banknotes Q&A Library
Polymer banknotes Q&A library This Q&A library pulls together a range of information relevant to the introduction of new polymer £5 and £10 notes by the Bank of England. It is primarily intended to provide a useful source of reference for businesses to help prepare for the introduction of the new notes. The library will be updated periodically. Contents What changes are planned for Bank of England banknotes? ................................................................. 2 Why are banknotes changing? ................................................................................................................ 3 When will the new banknotes be issued and the old ones withdrawn? ................................................ 4 Collaborative planning and preparation ................................................................................................. 5 Adapting cash handing machines ........................................................................................................... 6 Recognising and authenticating the new notes ...................................................................................... 7 Properties of polymer banknotes ........................................................................................................... 8 £1 coin and Scottish and Northern Ireland banknotes ........................................................................... 9 Further information ............................................................................................................................. -
Intergraf International Security Printers Conference Copenhagen 22 to 24 April 2015
INFOSECURA A magazine for the security printing industry worldwide, published four times a year by Intergraf in Brussels and mailed to named members of the security printing community, such as security printers, their suppliers, banknote issuing, government and postal authorities as well as police forces in more than 150 countries. Intergraf International Security Printers Conference Copenhagen 22 to 24 April 2015 In this issue: A look at security features on banknotes Poland’s first polymer banknote Designing Norway’s new banknotes Banknotes: Under- or over-featured? Motion’s Rapid move An even livelier Spark and ...security features from G&D and DLR INTERGRAF November 2014- 18th year - Number 62 INFOSECURA EDITORIAL Unforgeable, verifiable and economical? The subject of this issue of Infosecura is the everyday use of currency and thus the banknotes, or more precisely, security fea- national economy, will not be affected. Mo- tures on banknotes. In the last decades, rocco thus gave Landqart’s Durasafe a start. banknotes have become very sophisticated Now Poland, as the second among Europe- and every time a central bank decides to an nations, is testing the water with the 20 issue a new series, not only will the design Złoty banknote printed on Innovia’s Guard- be on an artistically higher level, the security ian. (Rumania was the first European country features will be more advanced, much more to go totally “Polymer”.) difficult to counterfeit and probably more Alternative substrates aside, the idea be- expensive as well. hind the impromptu investigation into the se- Security features are developed by se- curity features used by a handful of different curity printers and banknote paper makers countries was to demonstrate that traditional on the one hand - we are bringing examples security features still hold a large and impor- from De La Rue and Giesecke & Devrient tant place on the world’s currencies. -
Bank of England Decision on the Future Composition of Polymer Banknotes
Press Office Threadneedle Street London EC2R 8AH T 020 7601 4411 F 020 7601 5460 [email protected] www.bankofengland.co.uk 10 August 2017 Bank of England decision on the future composition of polymer banknotes The Bank is today, Thursday 10 August, announcing that after careful and serious consideration and extensive public consultation there will be no change to the composition of polymer used for future banknotes. The new polymer £20 note and future print runs of £5 and £10 notes will continue to be made from polymer manufactured using trace amounts of chemicals, typically less than 0.05%, ultimately derived from animal products. This decision reflects multiple considerations including the concerns raised by the public, the availability of environmentally sustainable alternatives, positions of our Central Bank peers, value for money, as well as the widespread use of animal-derived additives in everyday products, including alternative payment methods. In reaching its decision, the Bank has also taken account of its obligations under the Equality Act 2010. The only currently viable alternative for polymer banknotes is to use chemicals ultimately derived from palm oil. In order to seek the public’s views on both these options, the Bank ran a full public consultation which set out a range of relevant information. The Bank has also conducted outreach meetings with representatives of potentially impacted groups, commissioned technical trials, held commercial discussions and commissioned independent environmental research. 3,554 people responded to our consultation. Of those who expressed a preference, 88% were against the use of animal-derived additives and 48% were against the use of palm oil-derived additives. -
Non-Binding Summary of Terms Series a Preferred Stock Financing
NON-BINDING SUMMARY OF TERMS SERIES A PREFERRED STOCK FINANCING NewCo Biosciences, Inc. March 9, 2013 This Term Sheet summarizes the principal terms of the Series A Preferred Stock Financing of the Company. Issuer: NewCo Biosciences, Inc. (the “Company”). Investors: ABC Venture Partners IV, LP and its Affiliates (“ABC”), XYZ Partners, LP (“XYZ,” and each of ABC and XYZ, a “Co-Lead Investor”), and other investors approved by both Co-Lead Investors and the Company. Collectively, the Co-Lead Investors, the holders of the bridge notes on an as-converted basis (the “Bridge Note Holders”) and other investors and holders of Series A Preferred Stock shall be hereinafter known as Investors. Pursuant to the terms of the bridge notes, all outstanding bridge notes will convert into Series A Preferred Stock at the First Tranche Closing. Amount of Financing: $15,000,000 to $17,000,000 in two tranches (the “First Tranche” Comment [1]: The proposed and the “Second Tranche”, collectively, the “Tranches”) in the investment is a range since there may amounts set forth below (exclusive of debt converting at the First be other investors coming in or the Tranche Closing), with each such Tranche becoming due as set forth valuation may change during due in the “Closings” section below. diligence. § First Tranche: 40% of the total investment amount Comment [2]: To reduce their risk, the investors will allocate money in § Second Tranche:60% of the total investment amount two chunks or tranches, based on The Investors total capital commitments are as follows: milestones. For the company, this guarantees a stock price and valuation § ABC: Up to $5,000,000 for a significant period of time, reducing the amount of negotiations § XYZ: Up to $8,000,000 required for a series B. -
Modern Money Mechanics
Modern Money Mechanics A Workbook on Bank Reserves and Deposit Expansion Federal Reserve Bank of Chicago Modern Money Mechanics The purpose of this booklet is to desmmbethe basic Money is such a routine part of everyday living that process of money creation in a ~actionalreserve" bank- its existence and acceptance ordinarily are taken for grant- ing system. l7ze approach taken illustrates the changes ed. A user may sense that money must come into being either automatically as a result of economic activity or as in bank balance sheets that occur when deposits in banks an outgrowth of some government operation. But just how change as a result of monetary action by the Federal this happens all too often remains a mystery. Reserve System - the central bank of the United States. What Is Money? The relationships shown are based on simplil5ring If money is viewed simply as a tool used to facilitate assumptions. For the sake of simplicity, the relationships transactions, only those media that are readily accepted in are shown as if they were mechanical, but they are not, exchange for goods, services, and other assets need to be as is described later in the booklet. Thus, they should not considered. Many things -from stones to baseball cards be intwreted to imply a close and predictable relation- -have served this monetary function through the ages. Today, in the United States, money used in transactions is ship between a specific central bank transaction and mainly of three kinds -currency (paper money and coins the quantity of money. in the pockets and purses of the public); demand deposits The introductory pages contain a briefgeneral (non-interest-bearingchecking accounts in banks); and other checkable deposits, such as negotiable order of desm'ption of the characte*ics of money and how the withdrawal (NOW)accounts, at all depository institutions, US.