1. The authority and monopoly of the central bank

As an important institution for the country to regulate the economy, the central bank enjoys exclusive currency issuance rights and fulfills the state's mandate to regulate the economy and stabilize the currency. Task.

2. The relative independence of the central bank

The central bank formulates and implements financial policies on behalf of the country, regulates the economy and manages financial activities in accordance with the law, and is not subject to interest groups or government leaders personal intervention, and is not subject to the intervention of share investors.

3. The non-profit nature of the central bank

The central bank is an independent economic entity, but the purpose of all activities is to stabilize the currency and develop the economy, and is not related to commercial banks and all economic sectors. Strive for profits and have no own profit goals. In this way, the central bank is distinguished from commercial banks and all other financial institutions; and from other government agencies of the country that manage the economy.

Extended information:

Background

1. The rapid development of the commodity economy. In the early 18th century, Western countries began the industrial revolution. The rapid development of social productivity and The rapid expansion of the commodity economy has made the currency business more and more common and profitable, thus giving rise to the desire to control currency wealth. The central bank emerged in the second half of the 17th century and was formed in the early 19th century. The economic background of its emergence is as follows: Economic development

2. Frequent occurrence of capitalist economic crises. The inherent contradictions of the capitalist economy itself will inevitably lead to continuous economic crisis. Faced with the situation at that time, the bourgeois government began to look for reasons in the monetary system, trying to control, avoid and save frequent economic crises by issuing bank bonds.

3. With the widespread establishment of commercial banks, and the rapid development of the commodity economy, the banking industry has gradually flourished. The rapid development of the commodity economy and the rise of the capitalist mode of production drove the continent's money changers to transform into commercial banks, while also accelerating the emergence of new banks.

Reference source: Baidu Encyclopedia-Central Bank

Baidu Encyclopedia-Central Bank Characteristics