The central bank is the bank of all banks. It is the regulatory bank in a country which regulates all the banks in the country, prints currencies and drafts monetary policies. A head load of responsibilities and duties are bestowed upon the central bank of a nation. For example, if we look into the central bank of India that is the Reserve Bank of India (RBI) has got immense duties, responsibilities and power regarding the banking sector in India and the monetary sector in India. But have you ever thought of the central banks of another nation? What all will be the top 10 central banks of the world 2021? Well, it is not so easy to formulate a measurement criterion for evaluating that. Each and every central bank in the world has got immense duties and responsibilities. Well in terms of its monetary reserve let us look into the top 10 Central banks in the world 2021.
Federal Reserve System – US
The Federal Reserve System is the central bank of the United States of America. It has got a total asset of $7,404,926,000,000. It was established by the 23rd December 1913 by virtue of the Federal Reserve Act. The structure of the Federal reserve system consists of a federal reserve system having 3 key entities namely Federal Reserve Board of Governors, 12 Federal Reserve Banks and Federal Open Market committee. The Federal Reserve System which is one of the top central banks of the world has got mainly 5 key functions:
- Conducting the Nation’s Monetary Policy
- Helping maintain the stability of the financial system
- Supervising and regulating the financial institutions
- Fostering payments and settlement system safety and efficiency
- Promoting consumer protection and community development
Bank of Japan – Japan
The Bank of Japan is the central bank of Japan. It is one of the top central banks in the world having a total asset of $6,548,870,000,000. It was established under the Bank of Japan act 1882 and it was reorganized in 1942. The objectives of the Bank of Japan “to issue banknotes and to carry out currency and monetary control” and “to ensure smooth settlement of funds among banks and other financial institutions, thereby contributing to the maintenance of stability of the financial system.” The organizational setup of the bank has got three layers as follows:
- The Policy Board
- The Bank’s Officers
- Departments, Branches, Local Offices in Japan, and Overseas Representative Offices
People’s Bank of China (PBoC) – China
PBoC is the central bank of china. It is one of the top central banks in the world having a total assets of $5,144,760,000,000. It was established by the consolidation of the Huabei Bank, the Beihai Bank and the Xibei Farmer Bank. It was entrusted with the carrying of framing monetary policy as well as fiscal policy in china. The headquarters of the PBoC is situated in Beijing and Shanghai.
Deutsche Bundesbank – Germany
Deutsche Bundesbank is the central bank of the Federal Republic of Germany. It is one of the top central banks in the world having a total asset of $1,993,180,000,000. It was established under the Bundesbank Act 1957. Its head offices are located in nine german cities and are followed by 35 branches.
Bank of France – France
The Bank of France is the central bank of France. It is one of the top central banks in the world having a total assets of $1,278,370,000,000. It was established as a private institution to manage the state debts and notes. Eventually it transformed into a central bank. Its headquarters is situated in Paris and currently François Villeroy de Galhau is serving as the governor of the central bank.
Bank of Italy – Italy
Bank of Italy is the central bank of Italy. It is one of the top central banks in the world having a total assets of $1,135,605,542,549. It is a public-law institution regulated by national and European legislation. It is an integral part of the Eurosystem, which is made up of the national central banks of the euro area and the European Central Bank. The Bank pursues aims in the general interest in the sector of money and finance: price stability, which is the main objective of the Eurosystem under the Treaty on the Functioning of the European Union; the stability and efficiency of the financial system, thus implementing the principle of the protection of savings embodied in the Constitution (Article 47 states ‘The Republic encourages and protects saving in all its forms, it regulates, coordinates and controls the provision of credit’); and the other duties entrusted to it by Italian law.
Bank of Spain – Spain
Bank of spain is the central bank of spain. It is one of the top central banks in the world having a total assets of $1,135,110,000,000. It is established in 1782 by Charles III. Its activity is regulated by the Law of Autonomy of the Banco de España. The bank of spain has the following governing body
- The governor
- The deputy governor
- The governing council
- The executive committee
Swiss National Bank – Switzerland
The swiss national bank is the central bank of Switzerland. It is one of the most heard and top central banks in the world having a total asset of $1,131,370,000,000. The National Bank was founded by virtue of the Federal Act on the Swiss National Bank, which entered into force on 16 January 1906. Business was started on 20 June 1907. The National Bank is a special statute joint-stock company governed by special provisions of federal law. It is administered with the cooperation and under the supervision of the Confederation in accordance with the provisions of the National Bank Act.
Bank of England – UK
Bank of England is the central bank of the UK. It is one of the top central banks in the world having a total assets of $1,043,140,000,000. Bank of England was started nearly 300 years ago as a private bank with stake holders. The government nationalised the bank in 1946. The mission of the bank is to promote the good of the people of the United Kingdom by maintaining monetary and financial stability. That includes things like making sure you can pay for things securely, keeping the cost of living stable, and ensuring you can rely on banking or payment services.
Central Bank of Brazil- Brazil
The name itself carries all. It is one of the top central banks in the world having a total asset of $720,710,000,000. It was established in the year 1964.
Every country has its own central bank to control and regulate the monetary policy and to print and control the currencies in circulation. But to pick a top 10 from those central banks was a herculean task. These are sorted according to their assets in dollars. And that doesn’t mean that they are the top central banks in the world. In terms of efficiency and market scope and strict regulation the list will be changed. But for a global exam aspirant view attitude understands the top central banks in the world. Enroll to Entri for more general awareness updates. Keep studying, keep winning!