Nationalbank

Nationalbank is the term used in several languages for the central bank of a country. While the exact official name varies, the function is to conduct monetary policy and oversee the financial system. The central bank generally has the exclusive authority to issue currency and manage the nation’s key payment systems, while the government handles fiscal policy.

Core functions typically include formulating and implementing monetary policy to achieve price stability and sustainable growth, often through setting policy interest rates and using other tools such as reserve requirements or asset purchases. It issues currency and ensures its integrity, manages official foreign exchange and gold reserves, and acts as lender of last resort to banks during times of stress. In many economies, the central bank also plays a role in supervising and regulating financial institutions and markets, either directly or in cooperation with other regulators, and supports smooth operation of payments and settlement systems.

Governance and variations: central banks are usually governed by a board or council, with a governor or president as its head. They are commonly designed to be independent from direct political control to preserve credibility, while remaining accountable to the legislature and the public. The precise mandate and powers vary by country, with some central banks enjoying greater independence or broader regulatory duties. In practice, national banks play a central role in macroeconomic stabilization, financial stability, and crisis response.