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. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and usually also prints the national currency, which usually serves as the state's legal tender.
The primary function of a central bank is to control the nation's money supply ( monetary policy), through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis. Central banks usually also have supervisory powers, intended to prevent bank runs and to reduce the risk that commercial banks and other financial institutions engage in reckless or fraudulent behavior. Central banks in most developed nations are institutionally designed to be independent from political interference. Still, limited control by the executive and legislative bodies usually exists.
Longman Dictionary of Contemporary English
n. (context banking English) The principal monetary authority of a polity or monetary union; it normally regulates the supply of money, issues currency and controls interest rates. It usually oversees banking activity within its country's borders.
n. a government monetary authority that issues currency and regulates the supply of credit and holds the reserves of other banks and sells new issues of securities for the government
Usage examples of "central bank".
The quite unofficial spokesman for the PRC in Hong Kong and the ranking Communist appointment was believed to be, presently, one of the deputy chairmen of the Bank of China, China's central bank through which passed all foreign exchange and all the billion U.
Her wands flickered, entering the coin's serial number into the records of the Central Bank of the Republic.
He borrowed from the central bank to buy coal mines, private banks, paper mills and newspapers.
Ling placed his right index finger on it, and they waited as the ID was established and the central bank returned a credit rating.
THE FINAL AND by far the most important belief of the inner club is the conviction that when the bell tolls for any single central bank it tolls for them all.
Henry found himself in a middle seat in the central bank of four, a long way away from the 747's tiny windows.
Kommando 1005 will be remitting plenty of stuff to the central bank depository in Berlin, and Blobel's promotion will duly record this.
Kashan was an adviser to the governor of the Iranian Central Bank.
Maybe the Frenchman is letting him think he's getting close so that the French central bank can score points on Berlin.