Models of Central Banking

There are basically three models on which a central bank can be constituted.

As a Legal Person:

A central bank can be established as a legal person. this enables the bank to carry out
general activities. Here the central bank is not an administrative subordinate to the
government. The Deutsche Bank is an example of such type.

As Official Central Bank:

Here the bank does not have the status of a legal person, it is purely a functional arm
of the government which is responsible for making and executing the national
monetary policy.

As an Integrated Cental Bank:

It is granted the status of a legal person as well as the status of the official central
bank.It can undertake banking business and at the same time it is the financial
management authority of the Government.