Açıqlama:

central bank is at the heart of the banking system. It is because the central bank is the “banks’ bank” and the government’s bank. Most countries have some form of central bank serving for the nation’s financial matters. Legal mechanism and the mandate of central banks depend on some features such as economic considerations, social preferences, political environments etc. The central banks are the main part of banking system in all countries. The legal status, goals, specific functions and duties of central banks’ are regulated with certain countries’ banking legislation. The central bank of the Old World type was a bank of banks. “Its primary function was to rediscount bills of ex- change which have their origin in various parts of the country and which pass through inferior banks whose endorsement they bear”. After many years the other functions mentioned below were transferred to the central banks