Keskpanka

Keskpanka is a term used to refer to the central bank in some languages and contexts, denoting the public institution responsible for a country’s monetary policy, financial stability, and payment systems. The central bank typically issues the national currency, manages the money supply, and aims to maintain price stability while supporting sustainable growth.

Core functions include formulating and implementing monetary policy, guiding short-term interest rates, and conducting operations in the money and government debt markets. It acts as lender of last resort to banks during liquidity crises, and supervises financial institutions to ensure safety and soundness. It also operates or oversees payment and settlement systems to ensure reliable and efficient financial transactions.

Governance structures usually feature a governor or president, a board or council, and a legal mandate that grants a degree of independence from day-to-day political control. Members are appointed for fixed terms, and the bank reports to the legislature or an equivalent supervisory body to ensure accountability and transparency.

Policy frameworks vary by country but commonly include inflation targeting or price stability as a primary objective, with a flexible exchange rate regime in many economies. In some cases, additional macroprudential tools are used to curb systemic risk.

Typical tools include open market operations, standing lending and deposit facilities, and reserve requirements. Some centers intervene in foreign exchange markets or pursue innovations such as a central bank digital currency to modernize payments.

While central banks are regarded as guardians of monetary stability, debates focus on the appropriate balance between independence and democratic oversight, potential fiscal dominance, and the distributional effects of monetary policy.