central banking institutions

Central banking institutions are the main banks for a country's economy, responsible for managing money supply, interest rates, and financial stability. They issue the national currency, regulate commercial banks, and oversee policies to support economic growth and control inflation. By adjusting interest rates and using other tools, central banks influence borrowing, spending, and employment levels, helping to maintain a healthy economy. They also act as lenders of last resort during financial crises to prevent system failures. Overall, central banks play a crucial role in maintaining financial stability and supporting government economic policies.