Central Bank Ratings: A New Methodology for Global Excellence

ISBN-13: 9783030987121 / Angielski / Twarda / 2022

Indranarain Ramlall

Opis

This study investigates a benchmark for comparing central banks. The author employs a unique and large set of metrics to gauge the quality of central banks and presents an argument to reflect upon international best practice. The study uses different criteria including the accounting body, research, presence of stress-testing exercises, inflation-targeting frameworks, staff efficiency, and languages of communication with the public, amongst others. The book begins by providing an overview of central banking, before exploring some stylized facts about central banks in detail. It then presents a ratings methodology for worldwide central banks before analysing the results. A backtesting exercise is included to validate the quality of the ratings obtained. The book concludes by offering insights into the comparison of central banks.

Spis treści

Chapter 1.Introduction  

Chapter 2.An Overview of Central Banking in the World

Chapter 3.Some Stylized Facts about Central Banks.

Chapter 4.Ratings Methodology for central banks worldwide

Chapter 5.Second and Third Division Rated Central Banks

Chapter 6.Results and Discussions

Chapter 7.Backtesting

Chapter 8.Global Central Bank Ratings Sheets

O autorze

Indranarain Ramlall is  Associate Professor at the University of Mauritius. Prior to joining the University, he was Credit Corporate Officer at the State Bank of India (Mauritius), and then Fund Manager at Anglo-Mauritius Financial Services Limited. Dr. Ramlall previously worked within the Financial Markets Division and the Financial Stability Unit at the Bank of Mauritius (The Central Bank of Mauritius). At this time, he also served as a member of the Joint Working Group Committee on Debt Management and the Sub-Committee on Treasury Bill Allocation.  His research interests include financial stability, central banking, risk management, economics and finance in Mauritius, investment analysis, quantitative techniques and econometric modelling, and the economics of climate change and Green Finance.

Blurb

“Since the global financial crisis began, central banks have taken a wide range of non-conventional policies in an effort to subdue the effects of economic recessions. Concurrently, the on-going credibility and stability of these banks has been increasingly under the spotlight. This timely and welcome research-based book proposes a new framework for the evaluation of central banks via ratings scores. It will help to fill an important gap in our knowledge by contributing to the debate on the question of central banking quality and how to assess it. As such, it is likely to be required reading for both practitioners and researchers of this topic.” 
-Professor Chris Brooks, Henley Business School, University of Reading, UK

When the global financial crisis broke, central banks in both the US and the UK undertook massive asset purchase programmes which resulted in considerable increase in assets. Cross-border spillover effects were noted across global economies. Balance sheet adjustments may eventually gnaw at the profit-earning capacities of central banks, and in extreme cases, negative equity can manifest.

This updated book investigates a benchmark for comparing central banks. The author employs a unique and large set of metrics to gauge the quality of central banks and presents an argument to reflect upon international best practices covering 124 banks in this latest study. The study uses different criteria including the accounting body, research, presence of stress-testing exercises, inflation-targeting frameworks, staff efficiency, and languages of communication with the public, amongst others. The book begins by providing an overview of central banking, before exploring some stylized facts about central banks in unique detail. It then presents a ratings methodology for worldwide central banks to analyse the results. A backtesting exercise is included to validate the quality of the ratings obtained. The book concludes by offering insights into the comparison of central banks.

Indranarain Ramlall is  Associate Professor at the University of Mauritius. Prior to joining the University, he was Credit Corporate Officer at the State Bank of India (Mauritius), and then Fund Manager at Anglo-Mauritius Financial Services Limited. Dr. Ramlall previously worked within the Financial Markets Division and the Financial Stability Unit at the Bank of Mauritius (The Central Bank of Mauritius). At this time, he also served as a member of the Joint Working Group Committee on Debt Management and the Sub-Committee on Treasury Bill Allocation.  His research interests include financial stability, central banking, risk management, economics and finance in Mauritius, investment analysis, quantitative techniques and econometric modelling, and the economics of climate change and Green Finance.