Definition of Central Bank by Different Authors:
The Bank of International Settlements defines “A Central Bank is the bank in any country to which has been entrusted the duty of regulating the volume of currency and credit in that country”
Some specialized Bankers, Economists, and thinkers have given different definitions: “ A central bank is a bank whose essential duty is to maintain the stability of the monetary standard.”
According to Hawtray “Central bank is the lender of the last resort.”
H. Collin defined “Central bank is the main government-controlled bank in a country, which controls the financial affairs of the country by fixing main interest rates, issuing currency, supervising the commercial banks and controlling the foreign exchange rate.”
According to Prof. Kisch “A central bank is a bank whose essential duty is to maintain the stability of the monetary standard.”
According to Samuelson, “Every Central Bank has one function. It operates to control the economy, supply of money, and credit.”
Vera Smith defines, “The primary definition of Central Bank is the banking system in which a single bank has either a complete or residuary monopoly of note issue.”
According to Kent, “Central Bank may be defined as an institution which is charged with the responsibility of managing the expansion and contraction of the volume of money in the interest of general public welfare.”
In the words of Decock
“ The central bank is a banking system in which a single bank has either a complete or a residuary monopoly of note issue.”
merriam-webster.com defines “a national bank that operates to establish monetary and fiscal policy and to control the money supply and interest rate”.
According to D.C. Rowan, “The Central Bank is an institution, often but not always owned by the state, which has the overriding duty of conducting the monetary policy of the government.”
According to R S Sayers “The central bank is a government institution that performs most of the economic functions of the government and implements the monetary policy of the government by influencing the work of the financial institutions of the country in various ways while performing those functions.”
Functions of Central Bank:
- Issue of notes and coins
- Government Bank
- Banker’s Bank
- Lender of the Last Resort
- Reservoir of foreign currency
- Clearing House
- Credit Control
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