Central Bank Definition - Glossary

Central Bank is the national authority managing a country's monetary policy and financial stability.

Central Bank is the primary financial institution responsible for overseeing a country's monetary system and policy. It regulates the money supply, sets interest rates, and acts as a lender of last resort to banks during financial crises. Additionally, it manages foreign reserves and issues currency. By influencing inflation and employment levels, central banks aim to maintain economic stability and growth. They often operate independently from political influence to ensure unbiased economic decisions. Examples include the Federal Reserve in the U.S. and the European Central Bank in the Eurozone.