A central bank or reserve bank is the apex financial body of a country that manages a nation’s currency, money supply and interest rates. Central banks also usually oversee the commercial banking system of their respective countries.
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 commercial banks and other financial institutions from reckless or fraudulent behavior.
Central banks in most developed nations are institutionally designed to be independent from political interference.
- Functions of Central Bank
Functions of a central bank may include:Implemention of monetary policies.
Setting the official interest rate used to manage both inflation and the country’s exchange rate and ensuring that this rate takes effect via a variety of policy mechanisms
Controlling the nation’s entire money supply
Open Market Operations- Buying and selling of securities in order to keep check on money supply in the country
Regulating Issuance of currency
Determinination of Interest rates
Managing the country’s foreign exchange
Performing the Government’s banker and the bankers’ bank functions; acts as a ‘lender of last resort’
Regulating and supervising the banking industry
Setting nation’s gold reserves and the Government’s stock registerList of Central Banks
The central Bank of most developed countries of the world include:
Bank of America Products & Services
Bank of America
Bank of Canada
Bank of New York
Central Bank Bahamas
Central Bank Brazil
Central Bank Chile
Central Bank China
Central Bank Egypt
Central Bank Iraq Financial Organisations Governed
Central Bank Iraq
Central Bank Ireland
Central Bank Kenya
Central Bank Kuwait
Central Bank Malyasia
Central Bank Nigeria
Central Bank Oman
Central Bank Philippine
Central Bank Philippines Corporate Information
Central Bank Sri Lanka Corporate Information
Central Bank Sri LankaMore Information On BanksLast Updated on : 30th July 2013