Central banking (2nd Copy ) PPT

“Central banking”Prepared For

sharmila majumdar

Prepared BYMd Ismail Hossain AminurBBA-A#15102047

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