050  UK  US A  C a n a da 1  10  100  1 , 000  Po p ul at io n m illi illio o ns ( log sca calle )  BIS Review 33/1997  - 15 -  Figure 7  i n t er es t ra t es  b r an ch n et w or k  ba nk i n g su p e r v i s i o n ECB Fr a nce G er m an y  p a y m en t sy st e m  govve rn men t go de bt  UK  PBOC  interest 1 3  2  branch 0.2  banking 3  1  0  payment 1  government 1.8  BIS Review 33/1997  - 16 -  DATA system  UK US France Germ any Japan Italy Canada  rates supervision debt interest banking governm ent paym ent 1 3 1.8 3 1 0.5 3 1.9 0.1 3 2 1 1.5 1 0.1 3 3 1 3 1 1  system  Hungary Poland Slovenia Czech republic Slovakia Rom ania Bulgaria Russia  rates supervision debt interest banking governm ent paym ent 3 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 rates supervision debt interest banking governm ent paym ent 3 0.1 0.1 3 1.9 0.1 3 2 1 1 3 1.8 interest banking governm ent paym ent 1.5 3 1  system  ECB France Germ any UK PBOC  netw ork branch  1 2.5 2.5 3 2.5 3 0.5  0.1 1.5 3 2 2.5 3 2 netw ork branch  1.8 2 3 3 1.9 3 2 2  2 3 3 3 3 3 1.5 3 netw ork branch  1 2.5 3 1  0.1 3 2 0.2 branch  3  3  BIS Review 33/1997  - 17 -  Country  Banker to Banker to LOLR governmenbanks (clearing)  Banking Securities FX Interest Supervision settlement management rates  Britain France Germany Ireland Italy Netherlands Spain Sweden Switzerland  Y Y Y Y Y Y Y Y Y  n Y Y Y Y Y Y Y Y  Canada Japan USA  Y Y Y  n Y Y  N N n  Australia NZ  Y Y  Y Y  Czech Hungary Poland Romania Russia  Y Y Y Y Y  Y Y Y Y Y  Y  Y  Y  Y Y Y Y Y Y Y Y N  Y  Independence Debt 3rd co Staffing management purpose  Y Y Y  N Y Y  Y Y Y Y Y  Y y Y  N Y YY Y Y Y Y  Y  Y  Y Y Y  n Y  N Y  N N N  2,220 4,800 25,465  45 12  Y y  Y Y  y Y  y Y  N N  1,648 300  0  Y N Y Y Y  Y Y Y Y Y  Y Y Y Y Y  Y Y Y Y Y  Y N Y Y Y  Y  N  y N n N n N n N  Y  3,425 15,220 17,519 574 9,445 1,540 3,262 760 575  Branches  1,523 6,188 52,042  0 200  14 8 49 41 79  BIS Review 33/1997  - 18 -  Popl'n India Japan Romania UK Canada Spain Australia Netherlands USA Poland Italy Germany France Russia 1/3000 line 1/30,000 line  125 22.7 58.4 29.2 39.1 17.8 15.4 261 38.5 57.1 81.5 57.9 148  Gross expenditure  0.037 0.030 0.052 0.054 0.029 0.188 0.099 0.132  Popl'n 850 125 22.7 58.4 29.2 39.1 17.8 15.4 261 38.5 57.1 81.5 57.9 148 1 3  StaffP per cap.

Whereas monetary policy requires a highly trained but small cadre of economists in the head office of the central bank, large numbers of supervisors are needed, often spread across the country, to deal with a multitude of new banks with poor quality accounts. And the skills of assessing risk and the quality of management have not always come easily to staff from a bookkeeping background whose instincts are to tick boxes rather than make judgements. Staff who have acquired the skills needed are frequently enticed away to work for commercial banks at higher salaries. (iii) Managing government debt Another field in which central and eastern European central banks are generally more heavily involved than their western counterparts is in the management of government debt. (Hungary, where there is a separate debt office under the Ministry of Finance, broadly on the Irish model, is again an exception.) Under the old regimes governments relied on their state banks for finance, but the new statutes of the central banks - usually following an IMF model limit the provision of finance to government. Ceilings are mostly around 5% of government revenues, though in Estonia and Lithuania they are zero. With monetary financing restricted, new methods of financing governments have had to be developed and nearly all the central banks have taken a leading part in this process. Even where the government’s own financing needs have been small, as in the Czech Republic, central banks have been keen to establish markets in short-term paper in which they can conduct monetary operations.