Some Common Functions of Central Banks across the Globe
The authority and scope of operation of a central bank varies from nation to nation. In spite of the differences, some particular operations usually executed by the central banks are:
- Central Bank issues a country’s currency.
- It is the controller and care taker of the global exchange funds of the nation.
- One of the major responsibilities of a central bank is that it is the government’s investor.
- Not only does it serve the government, it is also a financier for commercial banking institutions.
- Having the powers of a financial controller, it administers the banks’ mortgage generation operations and functions as a regulator of loans.
- If contributes to the economic growth of the nation.
European Central Bank (Eurozone Central bank)
The prime purpose of the European Central Bank is to sustain cost solidity in the Eurozone. Its fundamental responsibility is to place and employ the fiscal procedure for Eurozone, to accomplish foreign exchange functions, caretaker of the global funds of the European System’s Central Banks and function of the monetary market conditions.