POWER

The power of a central bank to sue and be sued, along with other related powers, is a crucial aspect of its
operational framework. The power of a central bank to sue and be sued is a fundamental aspect of its
role in the financial system. It enables the central bank to enforce regulations, enter into financial
transactions, and uphold its responsibilities as a guardian of monetary and financial stability.

RESPOSIBILITIES

One of the responsibilities of a Central Bank is to exercise regulatory and examination powers over
various financial entities, including money service businesses, credit granting businesses, and payment
system operators. These responsibilities contribute to the stability and integrity of the financial system,
support economic growth, and protect the interests of both financial institutions and consumers.

FUNCTIONS

1. Liquidity Management

- Central Banks manage the money supply and liquidity in the financial system. They do this by
conducting open market operations, setting interest rates, and regulating banks’ reserve requirements.

3. Currency issue

- Central Banks have the exclusive authority to issue and regulate a country’s currency. They design
and produce banknotes and coins, ensuring their security and integrity.

5. Financial Supervision

- Central Banks oversee and regulate financial institutions, including banks, to ensure their safety and
soundness. This involves setting prudential regulations, conducting examinations, and monitoring
compliance. The aim is to protect depositors, maintain the stability of the financial system, and prevent
systemic risks that could lead to financial crises.