Central bankbank is usually an autonomous entity responsible for the stability of the national currency (see also money) and the national financial system as a whole. Furthermore it implements the country's monetary policy, which may conflict with the government's fiscal measures. Other duties might include providing financial services to governments (eg. storing other countries' monetary reserves) and supervising of banking institutions (eg. in the case of mergers and acquisitions) in order to protect the consumers.
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2 List of central banks
3 See also
4 External link
Central banking is a governmental, or multigovernemental (such as the European Central bank), refinancing bank of last resort, thus a monetary monopoly.
Typically it seeks to impose centralised control over market prices such as the price of credit. This is called interest rate policy.
Central banks are part of the infastructure used by the government to influence their country's economy. Central banks in different countries have a range of influence over exchange rates. Some exchange rates are managed, some are market based and many are somewhere in between.
Central banks influence interest rates through a policy lever called open market operations.
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List of central banks
(*) members of the European Central Bank, together with the Central Banks of Austria, Belgium, Ireland, Luxembourg and Portugal.
Also should be noted:
- World Bank group - In a sense, the central investment bank of the world (long term loans).
- International Monetary Fund - In a sense the provider of funds of last resort to countries short of liquidity (short term loans)
- Bank for international Settlements - an international organisation which fosters international monetary and financial cooperation and serves as a bank for central banks. http://www.bis.org/index.htm