There is clearly the expected positive relationship with population, but the ratio varies hugely: a central bank on the highest of the three parallel lines has ten times the staff per million population as one on the lowest line. The extent of this dispersion is more apparent in Figure 5 which shows the number of staff per million population for the large countries. With only around 3,500 people - down by more than 50% over the last twenty years and still falling fast - the Bank of England itself is one of the most modestly staffed in relation to its population. In contrast to the significant results found by Fry et al. from their sample of developing countries, regression analysis on the industrial country data shows only weak evidence of small economies of scale. Nor did other variables tested on industrial countries yield any significant results. As for the transition economies, their staff numbers generally conform to those in industrial countries with similar populations. The exception is the Bank of Russia, whose staff looks abnormally large. Some of these central banks are still growing as they seek to carry out their new functions; but one or two, like the National Bank of Hungary, are already reviewing what they are doing and how they do it, and are slimming down. By the end of this year, they expect to have 40% fewer staff than two years ago.

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.