central bank

Definition

Autonomous or semi-autonomous organization entrusted by a government to, administer certain key monetary functions, such as to (1) issue, manage, and preserve value of the country's currency, (2) regulate the amount of money supply, (3) supervise the operations of commercial banks, (4) and serve as a banker's bank and the local lender of last resort. Some Central banks (such as the Bank Of England) provide all these functions, others (such as in Germany and the US) employ two or more organizations. Most Central banks are owned by their respective governments (such as Bank Of England, Banque De France, Reserve Bank Of India), others (such as Belgian Central Bank and Bank Of Japan) have mixed ownerships, and two (Germany's Bundesbank and the US Federal Reserve System) are owned by private banks. Bank Of Sweden (1656) was the first Central bank, followed by the Bank Of England (1694) and the Bank Of France (1800). Bank Of Japan was established in 1888, and the US Federal Reserve System in 1913.