keskuspankeille

Keskuspankit are central banks, which are financial institutions that manage a state's currency, money supply, and interest rates. They play a crucial role in maintaining the stability of the financial system and promoting economic growth. Central banks are typically independent of the government, although their objectives are often aligned with national economic policy.

The primary functions of a central bank include issuing currency, acting as a banker to the government and commercial banks, and implementing monetary policy. Monetary policy involves controlling the money supply and credit conditions to influence inflation, employment, and economic output. This is often achieved through tools such as setting interest rates, conducting open market operations (buying and selling government securities), and setting reserve requirements for commercial banks.

Central banks also supervise and regulate the banking sector to ensure its soundness and protect depositors. They act as a lender of last resort to provide liquidity to banks facing temporary difficulties. Furthermore, many central banks are responsible for managing foreign exchange reserves and influencing exchange rates. The decisions made by central banks have a significant impact on national and global economies.