Management of Banking and Financial Services, 4e

CHAPTER TWO

Monetary Policy—Implications for Bank Management

CHAPTER STRUCTURE

Section I Basic Concepts

Section II Application of the Monetary Policy Tools in India

Section III Monetary Policy Tools in Select Countries

Chapter Summary

Test Your Understanding

Topics for Further Discussion

Annexure I, II and III (Case study)

KEY TAKEAWAYS FROM THE CHAPTER

• Understand the role of central bank and monetary policy in economic growth.
• Understand why banks hold reserves.
• Learn about the tools of monetary policy.
• Understand how the monetary policy impacts banking operations and management.

SECTION I

BASIC CONCEPTS

A Macroeconomic View

The primary objective of a country’s government is to achieve economic stability and growth. Hence, macroeconomic ...