central bank

(redirected from Central banks)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.
Related to Central banks: Commercial banks

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 ?
The organization is sponsored by the European Central Bank (ECB); the Board of Governors of the Federal Reserve System (FRB); the Center for German and European Studies (CGES), at Georgetown University, in Washington, D.
The Central Bank will continue to pursue lenders accordingly, in line with the Framework of the Examination.
But a second reason for central banks to intervene was to affect yields or prices.
This consideration comes on the back of political attacks directed at the country's central bank by senior members of the governing African National Congress (ANC) aligned with Zuma.
As it turns out, central banks may be able to cut their policy rates further below zero than previously thought.
Meanwhile, Bahrain's central bank said it had decided to raise its key policy interest rate to 0.
The central bank began independently carrying out monetary policy in the aftermath of a disastrous crisis in 2001.
Pakistan's central bank cut its key discount rate to 8.
Table 1, overleaf, outlines the functions that central banks are responsible for in a representative range of advanced and emerging economies for which information was readily accessible.
Here's a guide to the outlook for central banks, large and small around the world.
Over the past few decades, most central banks have focused on price stability as their single and overriding objective.
Rather than reargue that case, I want to take this opportunity to reflect on some of the institutional reasons behind the prevailing propensity of many modern central banks to intervene in credit markets.

Full browser ?