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Monday, March 30, 2015

Importance / Necessity / Significance / Role of Central Bank.

 M N H     11:14:00 PM     Central Bank     16 comments   

One of the objective of central bank is socio-economic development through formatting a balance economic environment. This bank directly helps to the government of a country by issuing note,  formatting and controlling  money market and banking system. The main objective of central bank is to develop the economy through economic discipline establishment in a country. Central Banks have generally played an important role in the establishment and working of development banks. The necessity and role of central bank are given below:



1. Issuing or decreasing note &and coin for translation more easy in market.

2. Prevention of money values.

3.Credit control.

4. Establishing government control.

5. Maintaining price stability.Beside

6. Development of internal & foreign trades.

7. Maintaining foreign exchange reserve.

8. Implementation of plan.

9. Control of foreign exchange.

10. Control of banking system of a country.

11. Control of money market.

12. Equitable & balanced distribution of wealth.

13. Development of manpower.

14. Creating employment.

15.development of living standard.

After above expression it is said that, always central bank should aim at the promotion of economic activities of a country, though it also performs so.
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