1, the authority and monopoly of the central bank.
As an important institution of national economic regulation, the central bank enjoys the exclusive right to issue currency and performs the tasks entrusted by the state to regulate the economy and stabilize the currency.
2. The relative independence of the central bank.
The central bank formulates and implements financial policies on behalf of the state, and conducts economic regulation and financial management activities in accordance with the law, without personal intervention by interest groups or government leaders, nor by stock investors.
3. The non-profit nature of the central bank.
The central bank is an independent economic entity, but all its activities are aimed at stabilizing the currency and developing the economy. It does not compete with commercial banks and all economic sectors for profits, nor does it have its own profit targets. In this way, the central bank is different from commercial banks and all other financial institutions; It is also different from other government agencies that manage the economy.
Central Bank:
It is the main institution responsible for the monetary policy of a country or region, and is usually the only currency issuer in the same economy. The duties of the central bank include formulating and implementing national monetary and credit policies, having the right to issue money and implementing financial supervision. Under normal circumstances, the central bank issues loans and buys and sells foreign exchange, so it has also become one of the participants in the foreign exchange market.
The main functions of the central bank:
1, issuing bank
The central bank is the issuing bank, that is to say, the central bank monopolizes the right to issue money and is the only authorized currency issuer in a country or a monetary union.
2. Bank's bank
The banking function of a bank refers to the central bank as the lender of last resort of commercial banks and other financial institutions. The banking function of the bank embodies the nature of the central bank as a special financial institution and is the basic condition for the central bank to become the core of the financial system. Through this function, the central bank exerts influence on the activities of commercial banks and other financial institutions to achieve the purpose of macro-control.
3. Government banks
The banking function of the government means that the central bank provides services for the government, and it is a specialized agency for the government to manage national finance.