Central Bank

A central bank, reserve bank, or monetary authority is a public institution that manages a state's currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the nation's monetary base, and usually also prints the national currency, which usually serves as the nation's legal tender. Examples include the European Central Bank (ECB), the Federal Reserve of the United States, and the People's Bank of China.

The primary function of a central bank is to manage the nation's money supply (monetary policy), through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis. Central banks usually also have supervisory powers, intended to prevent bank runs and to reduce the risk that commercial banks and other financial institutions engage in reckless or fraudulent behavior. Central banks in most developed nations are institutionally designed to be independent from political interference.

Read more about Central Bank:  History, Activities and Responsibilities, Goals of Monetary Policy, Policy Instruments, Banking Supervision and Other Activities, Independence

Other articles related to "central bank, central banks, bank":

Central Bank - Independence
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Currencies Of China - Japanese Occupation Money - Manchuria
... issues, the Kuomintang fabi and Yen currencies issued by the Bank of Chosen and the Bank of Taiwan ... After the puppet state of Manchukuo was created, the Japanese founded the Central Bank of Manchou on July 1, 1932 in Changchun (長春), then known as Hsinking (新京) ... While the bank provided commercial functions, it also acted as a central bank and issuer of currency ...
Athanasios Orphanides - Research
... They have argued that the central bank must ensure that inflation expectations must remain well-anchored, in line with the central bank’s price stability objective, in order ... Their work documented the benefits associated with a central bank’s numerical price stability objective and the pitfalls of optimal control policy design (Orphanides ...

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