Keskpank

Keskpank is the Estonian term for a central bank, the primary institution responsible for a country's monetary policy, currency management where applicable, and the stability of the financial system. In Estonian usage, keskpank can refer to the central banking system in general or to a particular nation’s central bank.

Core functions typically include formulating and implementing monetary policy to maintain price stability; issuing or coordinating currency issuance; acting as lender of last resort to banks during financial stress; managing foreign exchange reserves; supervising and regulating banks and payment systems; and conducting research and statistics to support policy decisions.

Governance and independence vary by country, but central banks are usually designed to operate with a degree of independence from routine political influence, while remaining accountable to the legislature or government. They are often led by a governor or an executive board, with statutory mandates and reporting requirements.

In Estonia, the national central bank is Eesti Pank. It was established after the country regained independence in 1991 and is a member of the European System of Central Banks. Since Estonia adopted the euro in 2011, Eesti Pank participates in the Eurosystem, implementing domestic aspects of monetary policy, maintaining financial stability, supervising the financial sector, and coordinating with the European Central Bank.

Thus, keskpank denotes the central banking authority in Estonian contexts, most typically represented today by Eesti Pank within the broader framework of the European monetary union.