Central Bank
A national institution that manages the money supply, sets interest rates, and oversees financial stability.
What is Central Bank?
A central bank is a national financial institution responsible for managing a country's monetary policy, issuing currency, overseeing the banking system, and acting as a lender of last resort to commercial banks during financial crises. Major central banks include the US Federal Reserve, the European Central Bank (ECB), the Bank of England (BoE), and the Bank of Japan (BoJ). Most modern central banks operate independently from elected governments to insulate monetary policy decisions from short-term political pressures. Their primary goals are typically price stability (low inflation) and full employment.
Example
During the 2008 global financial crisis, the Federal Reserve acted as lender of last resort, extending emergency credit facilities to prevent the collapse of systemically important financial institutions.
Source: Federal Reserve — About the Fed