central bank

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Central bank

A country's main bank whose responsibilities include the issue of currency, the administration of monetary policy, open market operations, and engaging in transactions designed to facilitate healthy business interactions. See: Federal Reserve System.

Central Bank

A bank that is constituted by a government or international organization to issue and regulate currency, regulate banks under its jurisdiction, act as a lender of last resort, and generally ensure a sustainable monetary policy. Oftentimes, central banks are charged with one or more specific duties such as attempting full employment or a certain exchange rate for the currency. Most commonly, however, central banks are charged with finding the balance between maintaining low inflation and high economic growth. They do this primarily by setting interest rates at which they lend to banks under its jurisdiction which, in turn, highly influences interest rates throughout the country or region. Prominent central banks include the Federal Reserve, the Bank of England, the European Central Bank, the Bank of Japan, and the People's Bank of China.

central bank

A bank administered by a national government. A central bank issues money and carries out the country's monetary policy. The Federal Reserve System is the central bank of the United States.

Central bank.

Most countries have a central bank, which issues the country's currency and holds the reserve deposits of other banks in that country. It also either initiates or carries out the country's monetary policy, including keeping tabs on the money supply.

In the United States, the 12 regional banks that make up the Federal Reserve System act as the central bank. This multibank structure was deliberately developed to ensure that no single region of the country could control economic decision-making.

central bank

a country's leading BANK generally responsible for overseeing the BANKING SYSTEM, acting as a ‘clearing’ banker for the COMMERCIAL BANKS (SEE CLEARING HOUSE SYSTEM) and for implementing MONETARY POLICY. In addition, many central banks are responsible for handling the government's budgetary accounts and for managing the country's external monetary affairs, in particular the EXCHANGE RATE.

Examples of central banks include the USA's Federal Reserve, Germany's Deutsche Bundesbank, France's Banque de France and the European Union's EUROPEAN CENTRAL BANK. (For a more detailed discussion of a central bank's activities see the BANK OF ENGLAND entry).

central bank

a country's leading BANK, generally responsible for overseeing the BANKING SYSTEM, acting as a ‘clearing’ banker for the COMMERCIAL BANKS (see CLEARING HOUSE SYSTEM) and for implementing MONETARY POLICY. In addition, many central banks are responsible for handling the government's budgetary accounts and for managing the country's external monetary affairs, in particular the EXCHANGE RATE.

Examples of central banks include the USA's Federal Reserve Bank, Germany's Deutsche Bundesbank, France's Banque de France and the European Union's EUROPEAN CENTRAL BANK. (For a more detailed discussion of a central bank's activities see the BANK OF ENGLAND entry.)

References in periodicals archive ?
High energy prices and high home prices have made mainstream America more skeptical that price stability has been achieved, despite a general view among economists that two decades of disinflation, globalization, and rising credibility at central banks has brought inflation close to zero.
Over the course of the 1980s, when the gold price fell from $615 to $381 an ounce, central banks added a net 344 tons of gold to their reserves.
The move, considered to be part of a move to make the yuan global, saw the people bank of China agreeing to create a currency swap line with the European Central Bank (ECB).
Covert selling (via central bank lending) has artificially depressed the price for a decade.
By using conventional as well as unconventional monetary policy instruments, central banks have reacted fast and forcefully to changed conditions, thus safeguarding financial stability.
Still, there is nothing good about sustained deflation, not for restructuring or the banking system or for credibility, so central banks should go to great efforts to get out of it.
Would the banking community have been persuaded to respond as they did in each of these cases by a central bank with much more limited authorities to affect events?
GATA Chairman Bill Murphy today repeated the organization's belief that, because of their sales and leasing of gold and their false accounting of leased gold as gold still in the vault, central banks possess only a fraction of the gold they claim to have.
The recognition that monetary policies that are in the best long-run interest of the nation may not always be popular in the short run has led not only the United States but also most other developed nations to limit the degree of immediate control that legislatures and administrations have over their central banks.
The central banks are probably attempting an "orderly retreat" with gold, trying to control the speed of its ascent.
Last month the ECB allowed the 17 national central banks in the eurosystem to reject collateral bank bonds backed by governments that have received a bailout from the European Union and International Monetary Fund (IMF), or whose credit rating falls below ECB standards.

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