The central bank plays a key role in a developed market economy. It fulfils the following three basic functions
The central bank plays a key role in a developed market economy. It fulfils the following three basic functions:
Issuing bank. NBP has the sole right to issue the currency that is legal tender in Poland. Narodowy Bank Polski determines the amount of currency issued and the time at which the currency enters in circulation, for the liquidity of which it is responsible. It also organises money circulation and regulates the amount of currency in circulation.
Banks’ bank. NBP performs regulatory functions with regard to other banks, in order to ensure the safety of deposits held by the banks and the stability of the banking sector. NBP organises the monetary clearing system, services current interbank settlements and actively participates in the interbank money market. Narodowy Bank Polski is responsible for the stability and safety of the entire banking system. NBP also supervises payment systems in Poland.
Central bank of the State. NBP provides banking services to the central government, holds the accounts of government and other central state institutions, state special-purpose funds, as well as central government entities, and executes their payment orders.