Central Bank

Central banks are institutions that manage a country's or monetary union's currency and monetary policy, possessing a monopoly on increasing the monetary base. They typically have supervisory or regulatory powers to ensure commercial bank stability and enforce policies on financial consumer protection and bank fraud prevention. Central banks play a crucial role in macroeconomic forecasting, guiding monetary policy decisions during economic turbulence. In most developed nations, central banks are institutionally independent from political interference, although governments typically have governance rights over them. Central banks have been distinguished from other financial institutions since the 20th century, with the Stockholms Banco (est. 1657) being widely regarded as the oldest central bank, and the Bank of England as a direct or indirect model for subsequent central banks. Central banks have various names, often being named after the relevant city or country's name, and the term "central bank" itself appeared in the early 19th century.learn more on wikipedia