National bank

Bank established by the national government to provide long-term finance for projects thought vital to the country’s economic development, such as major infrastructure. Other objectives may include the promotion of social progress and regional integration. Such banks are often found in developing or newly independent countries that lack established capital markets. In recent decades many have been partly or wholly privatized [Law, p. 230]. A federally chartered bank. Such banks are members of the Federal Reserve System and Federal Deposit Insurance Corporation. They usually have the initials NA after their name, which stands for National Association [Molles, Terry, p. 228]. The bank or financial institution with responsibility for a country's monetary policy. A central bank will normally act as a lender of last resort and may also be the regulator for the financial system ( cf. discount rate, open-market operations, reserve requirements ). Activities include issuing bank notes, accepting deposits and making loans to commercial banks, managing the national debt and the country's foreign exchange reserves, and acting as bankers to the government and other state agencies [Molles, Terry, p. 229]. The Central Bank is a financial institution charged with several functions, the most important of which is managing a country’s monetary policy. In addition, central banks typically manage a government’s debt and participate in formulating exchange rate policy together with the government. In many countries, they are the principal regulator for the financial sector. Modern central banks were first developed during the late seventeenth century, most notably with the foundation of the Bank of England in 1694 [Brown, McLean, Mcmillan, p. 210]. A national-level financial institution is usually responsible for discretionary monetary management and for controlling the health of a country's banking system. Central banks have a privileged position in issuing notes and as bankers to their governments. In most cases, the central bank is a public body, although the constitutions of some countries give it a degree of independence from the government. [Calhoun, p. 233].

Sources:

Calhoun, C. (2002). Dictionary of the Social Sciences. Oxford: Oxford University Press.

Brown, G. W., McLean, I., McMillan, A. (2018). A Concise Oxford Dictionary of Politics and International Relations (4 ed.) Oxford: Oxford University Press.

Molles, P., Terry, N. (1997). The Handbook of International Financial Terms. Oxford: Oxford University Press.

Law, J. (2018). A Dictionary of Finance and Banking (6 ed.) Oxford: Oxford University Press.