cover image

Central bank

Government body that manages currency and monetary policy / From Wikipedia, the free encyclopedia

Dear Wikiwand AI, let's keep it short by simply answering these key questions:

Can you list the top facts and stats about Central bank?

Summarize this article for a 10 years old

SHOW ALL QUESTIONS

A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union,[1] and oversees their commercial banking system. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base. Most central banks also have supervisory and regulatory powers to ensure the stability of member institutions, to prevent bank runs, and to discourage reckless or fraudulent behavior by member banks.

Central banks in most developed nations are institutionally independent from political interference.[2][3][4] Still, limited control by the executive and legislative bodies exists.[5][6]

Issues like central bank independence, central bank policies and rhetoric in central bank governors discourse or the premises of macroeconomic policies[7] (monetary and fiscal policy) of the state are a focus of contention and criticism by some policymakers,[8] researchers[9] and specialized business, economics and finance media.[10][11]