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A central bank, reserve bank, national bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base. Many central banks also have supervisory or regulatory powers to ensure the stability of commercial banks in their jurisdiction, to prevent bank runs, and in some cases also to enforce policies on financial consumer protection and against bank fraud, money laundering, or terrorism financing. Central banks in most developed nations are usually set up to be institutionally independent from political interference, even though governments typically have governance rights over them, legislative bodies exercise scrutiny, and central banks frequently do show responsiveness to politics. Issues like central bank independence, central bank policies and rhetoric in central bank governors discourse or the premises of macroeconomic policies (monetary and fiscal policy) of the state are a focus of contention and criticism by some policymakers, researchers and specialized business, economics and finance media. Definition The notion of central banks as a separate category from other banks has emerged gradually, and only fully coalesced in the 20th century. In the aftermath of World War I, leading central bankers of the United Kingdom and the United States respectively, Montagu Norman and Benjamin Strong, agreed on a definition of central banks that was both positive and normative.: 4-5  Since that time, central banks have been generally distinguishable from other financial institutions, except under Communism in so-called single-tier banking systems such as Hungary's between 1950 and 1987, where the Hungarian National Bank operated alongside three other major state-owned banks. For earlier periods, what institutions do or do not count as central banks is often not univocal. Correlatively, different scholars have held different views about the timeline of emergence of the first central banks. A widely held view in the second half of the 20th century has been that Stockholms Banco (est. 1657), as the original issuer of banknotes, counted as the oldest central bank, and that consequently its successor the Sveriges Riksbank was the oldest central bank in continuous operation, with the Bank of England as second-oldest and direct or indirect model for all subsequent central banks. That view has persisted in some early-21st-century publications. In more recent scholarship, however, the issuance of banknotes has often been viewed as just one of several techniques to provide central bank money, defined as financial money (in contrast to commodity money) of the highest quality. Under that definition, municipal banks of the late medieval and early modern periods, such as the Taula de canvi de Barcelona (est. 1401) or Bank of Amsterdam (est. 1609), issued central bank money and count as early central banks. Naming There is no universal terminology for the name of a central bank. Early central banks were often the only or principal formal financial institution in their jurisdiction, and were consequently often named "bank of" the relevant city's or country's name, e.g. the Bank of Amsterdam, Bank of Hamburg, Bank of England, or Wiener Stadtbank. Naming practices subsequently evolved as more central banks were established. They include, with references to the date when the bank acquired its current name: "Bank of [Country]": e.g. Bank of the United States (1791), Bank of France (1800), Bank of Java (1828), Bank of Japan (1882), Bank of Italy (1893), Bank of China (1912), Bank of Mexico (1925), Bank of Canada (1934), Bank of Korea (1950). The Bank of England has kept its original name of 1694, even though the Act of Union 1707 and Acts of Union 1800 expanded its remit to the broader United Kingdom. "National Bank": e.g. National Bank of Belgium (1850), Bulgarian National Bank (1879), Swiss National Bank (1907), National Bank of Poland (1945), National Bank of Ukraine (1991). "State Bank": e.g. State Bank of the Russian Empire (1860), State Bank of Pakistan (1948), State Bank of Vietnam (1951); also former central banks of Communist countries, e.g. the State Bank of the USSR (or Gosbank, 1922) or the State Bank of Czechoslovakia (1950). "People's Bank", also associated with Communism, is used by the People's Bank of China. "Reserve Bank": in the U.S. Federal Reserve (1913) and thereafter British colonies or dominions, e.g. South African Reserve Bank (1921), Reserve Bank of New Zealand (1934), Reserve Bank of India (1935), Reserve Bank of Australia (1960), Reserve Bank of Fiji (1984) "Central Bank": e.g. Central Bank of China (1924), Central Bank of the Republic of Turkey (1930), Central Bank of Argentina (1935), Central Bank of Ireland (1943), Central Bank of Paraguay (1952), Central Bank of Brazil (1964), European Central Bank (1998). "Monetary Authority", e.g. Monetary Authority of Singapore (1971), Maldives Monetary Authority (1981), Hong Kong Monetary Authority (1993), Cayman Islands Monetary Authority (1997). The Saudi Arabian Monetary Authority (est. 1952) was renamed the Saudi Central Bank in 2020 but still uses the acronym SAMA. In some cases, the local-language name is used in English-language practice, e.g. Sveriges Riksbank (est. 1668, current name in use since 1866), De Nederlandsche Bank (est. 1814), Deutsche Bundesbank (est. 1957), or Bangko Sentral ng Pilipinas (est. 1993). Some commercial banks have names suggestive of central banks, even if they are not: examples are the State Bank of India and Central Bank of India, National Bank of Greece, Banco do Brasil, National Bank of Pakistan, Bank of China, Bank of Cyprus, or Bank of Ireland, as well as Deutsche Bank. Some but not all of these institutions had assumed central banking roles in the past. The leading executive of a central bank is usually known as the Governor, President, or Chair. History The widespread adoption of central banking is a rather recent phenomenon. At the start of the 20th century, approximately two-thirds of sovereign states did not have a central bank. Waves of central bank adoption occurred in the interwar period and in the aftermath of World War II. In the 20th century, central banks were often created with the intent to attract foreign capital, as bankers preferred to lend to countries with a central bank on the gold standard. Background The use of money as a unit of account predates history. Government control of money is documented in the ancient Egyptian economy (2750–2150 BCE). The Egyptians measured the value of goods with a central unit called shat. Like many other currencies, the shat was linked to gold. The value of a shat in terms of goods was defined by government administrations. Other cultures in Asia Minor later materialized their currencies in the form of gold and silver coins. The issuance of paper currency is not to .... Discover the Bill Banks Susan Banks Frank Hammond popular books. Find the top 100 most popular Bill Banks Susan Banks Frank Hammond books.