2. The Role of the Central Bank
The center of the banking system in most
economies.
Main role is to maintain the stability of the
national currency and the money supply.
Usually owned by the government and run by
a public corporation.
Oldest central bank is the Bank of Sweden,
opened in 1668. Second oldest is the Bank of
England in the UK, opened in 1694.
3. Functions
Issues notes and coins for the nation's
currency.
Manages payments to and from the
government.
Manages national debt.
Supervises the banking system, regulating the
conduct of banks, holding their deposits and
transferring funds between them.
4. Functions
The 'lender of the last resort' to the banking
system.
Manages the nation's gold and foreign
currency reserves.
Operates the government's monetary policy.
5. Independent Central Banks
US Federal Reserve
The Bank of England
The Reserve Bank of India
The Bank of Mexico
The Bank of Japan
The Bank of Canada
The Reserve Bank of Australia
The European Central Bank
