Transcript
Definition of Central bank
A central bank, reserve bank, or
monetary authority is an institution that manages a state's currency, money
supply, and interest rates. Central banks also usually oversee
the commercial banking system of their respective
countries.
History Central bank
As the first public bank to "offer accounts not directly
convertible to coin", the Bank of Amsterdam
established in 1609 is
considered to be the
precursor to modern central
bank
Activities and responsibilitiesFunctions of a central
bank may include:
implementing monetary policies.determining Interest ratescontrolling the nation's entire money supplythe Government's banker and the bankers' bank managing the country's foreign exchange and gold reserves and the Government's stock registerregulating and supervising the banking industrysetting the official interest rate
Buying or selling securities to achieve an interest rate target in the interbank market .
Temporary lending of money for collateral securities These operations are carried out on a regular basis, where fixed maturity loans are auctioned off.
Foreign exchange operations such as foreign exchange swaps
Open market operations
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