Jegybanki

Jegybanki is the Hungarian term describing anything related to a central bank. In general, a central bank is a state institution responsible for a country’s monetary framework, including the issuance of currency and the management of the money supply and price stability. Central banks often oversee the payments system and may provide services to the government and commercial banks.

Core functions of a central bank include formulating and implementing monetary policy to achieve price stability and sustainable growth, managing official foreign exchange reserves, and ensuring the smooth operation of the payments infrastructure. They commonly influence the economy through tools such as policy interest rates, open market operations, and reserve requirements. In many systems, central banks also play a role in financial stability, surveillance of the banking sector, and acting as a lender of last resort during times of crisis. Depending on the jurisdiction, regulation and supervision of financial institutions may be shared with or separate from the central bank, while macroprudential measures may fall within its remit to address systemic risk.

Independence is a typical feature of jegybanki frameworks; central banks are usually designed to operate free from direct day-to-day political control, with mandates set by law and accountability to the legislature or the public. They publish assessments of economic outlook and policy decisions to promote transparency and credibility.

An example is the Magyar Nemzeti Bank, the central bank of Hungary, which conducts jegybanki functions such as monetary policy implementation, currency issuance, and oversight of the payments system within the country.