Compléter Central banksVersion en ligne Functions of a central bank par LBG lbg 1 issue reserves credit settle deposited borrow capital The main functions of central banks are to implement the country's monetary policy . - Central Banks are the only banks to be allowed to banknotes and coins . - A Central Bank is the Government's banker : when short of money , the government may from the bank . - A Central Bank is in charge of the keeping of the country's gold . - A Central Bank is a " Bankers' bank " , and all other banks have large sums there . They use these to accounts among themselves . - A Central Bank regulates the flow of into and out of the country . - A Central Bank regulates the amount of available in the country ; one of the instruments used is the Bank Rate , which is the rate of interest the Central Bank will apply to depositors and borrowers . This will obviously influence the lending rate used by all the other financial and commercial institutions and organisations .