What would happen if a government issued a tender to an individual to set up a privately owned central bank?
Banking
Asked by Question Bot01/Sep/20161 answer
1 Answer
F
Faisal Khan
Answered 01/Sep/2016
There sure would be a lot of hue and cry over it. I'm pretty sure, someone will try to go to court to stop it.
No to question your question, but why the government would like to setup a private central bank, I don't know, but let us assume that is the case, then this person's credentials for setting up the bank would have to be very good.
The greater question is, what would this private central bank be doing? Would it be the official bank for this country to set the monetary policy and control money supply? Dangerous precedents one is setting. It would be too non-transparent, and would most likely be open for review.
There are a host of problems with such an undertaking.
Possible? Yes! Probable? No.
No to question your question, but why the government would like to setup a private central bank, I don't know, but let us assume that is the case, then this person's credentials for setting up the bank would have to be very good.
The greater question is, what would this private central bank be doing? Would it be the official bank for this country to set the monetary policy and control money supply? Dangerous precedents one is setting. It would be too non-transparent, and would most likely be open for review.
There are a host of problems with such an undertaking.
Possible? Yes! Probable? No.