Central Bank

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 register

    List 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 Lanka

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    Last Updated on : 30th July 2013