What is Central Bank Definition & Meaning

0
25

What is Central bank

what is Central bank
what is Central bank

           Central bank that provides financial and banking services for its country’s government and, as well as implementing the government’s monetary policy and issuing currency.

           Central Bank have a wide range of responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation and full employment.

 You May Like to Read post:

         It regulates the supply of money, issues currency and controls interest rates.

         The CB has been described as “the lender of last resort“, which means that it is responsible for providing its economy with funds when commercial banks cannot cover a supply shortage. In other words, the central bank prevents the country’s banking system from failing. However, the primary goal is to provide their country’s currencies with price stability by controlling inflation.

         Its also acts as the regulatory authority of a country’s monetary policy and is the sole provider and printer of notes and coins in circulation. Time has proved that the central bank can best function in these capacities by remaining independent from government fiscal policy and therefore uninfluenced by the political concerns of any regime. The central bank should also be completely divested of any commercial banking interests.

        Central Bank is the father of all the banks in a country, it regulates all the banking system in a country.It is responsible for overseeing the monetary system for a nation, along with a wide range of other responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation and full employment.

                  In the last a central bank is an institution in the country. its objective are to overseen the banking system in a nation by acting as a banker to the central government .it is responsibility for maintaining the internal and external stability of the country.