Nationalization
Is the process by which private enterprises’ or companies’ ownership is transferred from
private to public; the organization(s) become property of the government, switching from
the purpose of maximizing profits to public welfare and benefit of the people
Privatization
Refers to the process by which ownership of public enterprises or companies is
transferred to private individuals; the government ‘sells’ these assets to private
organizations, with the intention of increasing competition and efficiency.
Central Bank
Every country has 1 central bank; the national institution which implements monetary
policies, issues currency, manages inflation rates, manages price stability and public
debts, and lends loans to other banks in times of crisis.
~Shaurya Doherey
Nationalization
Country Bank Year of Reason for Impacts of
Nationalization Nationalization Nationalization
Ireland Allied Irish Bank 2010 To achieve Restructuring of
financial the bank to lift
stability for out of financial
banking sector crisis
United Royal Bank of 2008 To help solve Significant
Kingdom Scotland financial crisis restructuring and
government
ownership
Chile Banco del Estado de 1971 Major industries’ Bank starts to
Chile nationalization give more loans
due to policies towards
from socialism infrastructure
and housing,
serving public
sector
Spain Bankia 2008 The Eurozone Required heavy
crisis, causing restructuring and
high government recapitalization
debts and through
financial government
collapse in efforts
Europe
Indonesia Bank Mandiri 1998 Financial Highly improved
difficulties efficiency,
which needed resulting in
government transformation to
intervention one of the best
banks in
Southeast Asia
Privatization
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Country Bank Year of Reason for Impacts of
Privatization Privatization Privatization
Germany Deutsche Bank 1989 Need for Major
competition and innovation in
foreign finances, and
investments popularity in
global banking
Brazil Banco do Brasil 1996 To decrease Increased
government competition,
intervention in efficiency, and
the country’s services in
economy banking sector
Mexico Banorte 1999 Improve service Major
and efficiency of improvement in
bank financial
inclusion and
service in the
banking sector
Japan Japan Post Bank 2015 To increase Receives Private
competition investments,
among banking while
sector maintaining
services for
postage
Italy Banca Nazionale 2006 To make the Improved
del Lavoro bank more performance
efficient and financially, more
resolve public foreign
debts investments
Central & Important Banks
Country Central Bank Important Banks Important Banks
USA Federal Reserve System Federal reserve Bank of Federal Reserve Bank
New York of San Francisco
Crucial in the country’s
economy, though; Manages stability of the Collects information
monitoring banks, U.S Dollar and about the regional
financial stability, participates in economy, which helps
employment levels, and international trade. make decisions for
lending loans monetary policies.
Europe European Central bank Deutsche bundesbank Banque de France
Responsible for the
Euro, and interest rate Maintains financial Carries out policies
policies to manage stability in the from the ECB
price changes and Eurozone, especially in throughout France, and
inflation Germany oversees international
reserves.
Japan Bank of Japan Osaka Branch of the Nagoya Branch of the
Bank of Japan Bank of Japan
Enforces policies to Addresses regional Addresses regional
maintain financial economic issues, economic issues,
stability and issues providing insights to providing insights to
currency the BoJ the BoJ
Australia Reserve Bank of Australian Prudential Australian Securities
Australia Regulation Authority and Investments
Commission
Enforces monetary Oversees financial Protects consumers in
policies, and manages institutions by the banking industry
inflation rates to ensure regulating efficient nationally, through
stable economic growth practices, for economic services and monetary
growth policies
India Reserve Bank of India National Housing Bank Deposit Insurance and
Credit Guarantee
Corporation
Manages Oversees initiatives for Protects consumers by
monetary policies, housing development, protecting their
supervision of housing finance investments and
commercial banks, companies, and deposits through
price stability, and facilitates housing for insurance
issuing of currency appropriate prices
