Central Bank

A central bank is a country's monetary authority responsible for issuing currency, setting monetary policy, and maintaining financial stability. It manages the money supply, oversees payment systems, and often acts as lender of last resort to the banking system.

Central banks influence interest rates and manage fiat currency supply. Some also issue CBDCs for digital public money. Examples include the Federal Reserve and the ECB.

Related Terms

Fiat Currency

Fiat currency is money issued by a government and declared legal tender, but it is not backed by a p...

Interest

Interest is the cost of borrowing money or the return earned on deposited funds, typically expressed...

Federal Reserve

Federal Reserve System (Fed)

The Federal Reserve is the central bank system of the United States. It sets monetary policy, superv...

ECB

European Central Bank

The ECB is the central bank for the eurozone and is responsible for monetary policy in the region. I...

CBDC

Central Bank Digital Currency

A CBDC is a digital form of fiat currency issued by a central bank. It represents a direct claim on ...

Need to convert bank statements to spreadsheet format? Try our bank pdf to CSV converter to easily export your transaction data to Excel or CSV.

Glossary home

Convert 10 pages free per week.
Try your weirdest statement.

Convert a bank statement PDF free