How Much Do We Know About The Richest Federal Reserve Banks Around The Globe?

In every country of the world, there's only one banking institution on which

the government can rely on when borrowing currency as this is the sole entity to be granted this privilege. The issue of banknote and coins are also part of this authority's responsibilities. And, when other banks find themselves in difficulty due to some financial crisis, this institution acts as the 'lender as last resort' for them, and thus illustrating once more the difference between it and common commercial banks.

Depending on the part of the world they exist in, these banking authorities are called a central bank, federal reserve or monetary authority. The main expectation they have to fulfill is to insure the nation's money supply of a nation. Yet, they can also enjoy extended powers as they are in charge of supervising the activity of financial institutions or banks in order to prevent any attempts of reckless or fraudulent behavior. Other issues to be handled by central banks are the foreign exchange and gold and banks' reserves.

In most of the rich countries around the world, these monetary organisms have an independent existence, guiding themselves according to a set of rules and principles which do no allow for any political intrusion. . Examples of such a functioning mechanism may include the European Central Bank and the Federal Reserve System in the USA.

As we have already pointed out, the main task a federal or central bank has to accomplish is to watch over the banks' reserves. This term designates all the holdings the banks have, both deposits and currency, and kept in storage within the central bank. These reserves, just like countries, can fall in two categories: the richer and the poorer.

A greater interest seems to stir the question regarding the biggest federal reserve banks around the globe. The surprise is even greater when numbers are compared only to find out that the boom of reserve holdings which has been noticed for the last ten years manifests itself mainly in Asia. If we take a look at a top10 listing the central banks with the richest reserves in the world, we will immediately see that the first two positions are taken by China and Japan, which hold together around 43% of global reserves. Their official reserves account for $2,447.1 billion, respectively $1,046.8 billion, thus make it possible for them to become the countries with the richest federal bank reserves in the whole world. The list of ten is completed with central or federal banks of Russia, Saudi Arabia, Taiwan, India, South Korea, Hong Kong, Brazil and Singapore, each of them with official reserves amounting between 5.7% and 2.5 of global reserves.

Since we know by now which banks have the biggest federal reserves, perhaps it would be interesting to find out where in the world are the largest gold reserves. The bank we are looking for is the Federal Reserve Bank of New York, a place which stores the greatest quantity of gold in the world, amounting $203.3 billion. 550,000 pieces made of the precious metal form a treasure which can tickle everybody's fancy. For collectors and investors alike, bars, coins, medals or sovereigns, remain a mere beautiful dream sheltered somewhere in the vaults under the lower Manhattan.

by: Jack Wogan.

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