Keskuspankilla

Keskuspankilla is a term that generally refers to a central bank. Central banks are financial institutions that perform various functions related to a country's currency, money supply, and interest rates. They are typically responsible for maintaining price stability and ensuring the soundness of the financial system.

The primary objectives of a central bank often include controlling inflation, promoting economic growth, and managing unemployment. They achieve these goals through monetary policy tools such as setting interest rates, conducting open market operations, and adjusting reserve requirements for commercial banks.

Central banks also play a crucial role in regulating commercial banks and other financial institutions to prevent systemic risk and protect depositors. They act as a lender of last resort to banks in times of financial distress, providing liquidity to maintain stability.

Furthermore, central banks are usually responsible for issuing currency, managing foreign exchange reserves, and acting as the government's banker. The specific mandates and powers of a central bank can vary significantly depending on the country's legal framework and economic philosophy.