A central bank, also known as a reserve bank, national bank, state bank or monetary authority, is a financial institution that manages the monetary policy of a country or monetary union. Unlike a commercial bank, a central bank holds a monopoly on increasing the monetary base, and many central banks also carry supervisory or regulatory powers to keep commercial banks stable, prevent bank runs, and, in some cases, enforce consumer protection and anti-fraud and anti-money-laundering policy. Central banks play a crucial role in the macroeconomic forecasting used to guide monetary policy decisions, especially during economic turbulence.
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A central bank sits at the apex of a country banking system, regulating and backstopping the commercial banks beneath it.
A central bank core function is control over the money supply, typically holding the exclusive legal authority to issue a country currency.
Sources
Central Bank (Wikipedia)
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A central bank, reserve bank, national bank, state bank, or monetary authority is a financial institution that manages the monetary policy of a country or monetary union.
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