From BoK (Bank of Korea) to Global BoK

This speech from BoK Governor Choongsoo Kim is very interesting. I have not seen any central bank branding itself as a Global Central Bank. BoK in its 61st anniversary has made an agenda to make itself a world class central bank – from BoK to global BoK.

He says Korea has moved great strides since 60 years from poverty stricken to a G-20 member developed economy.  Central bank has played a great role in this transition and also needs to change itself with changing Korea. It needs to become world class bank of Korea as well along woth world class Korean economy.

It has made changes to its monetary policy framework to look at both price stability and financial stability in a global economic set-up. Along with new framework it is looking at international policy coordination, efficient conduct of currency issuing and payments and settlement systems.

For foreign capital flows, it is implementing Macroprudential stability levy on non-core foreign currency liabilities in coordination with government.

It is also revamping its research department to help it become a world class central bamk. Research forms the core of all this change.

Nice stuff.

Most central banks are introspecting and trying to figure ways to stimulate domestic economies and becoming more domestic. Bernnake defends his policies saying his policies are for US economy and if other countries getting effected by it, they need to make their own policies.

BoK on the other hand is trying to make itself more global. This is a reality and Korea is a small open economy. So making changes accordingly…

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