Published On: Mon, Apr 8th, 2013

Central Bank

A central bank is an establishment that oversees the monetary system for a single nation or group of countries.

With various responsibilities, many modern central banks do  more than simply regulate money flow and print currency.  They also maintain monetary policies including outlining and implementing financial planning goals.  Central banks continuously monitor and regulate the standards of national currency, the pace of inflation and the full time employment rates.

Typically, central banks oversee the nation’s credit system, monitor commercial banks, handle exchange reserves, print money and work as a bank for the national government.  A central bank may be used as a lender of last resort for that particular economic area.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.