What Is the Central Bank in Canada and What Functions Does It Perform?

A central bank is a financial institution tasked with the responsibility of managing the production and distribution of currency. It also provides a facility for government and commercial banks to access the financial services they need to run their operations. In essence, a central bank is a bank that governments and commercial institutions take their business to.

The Central bank of Canada sometimes referred to as the CBC, is known officially as the Bank of Canada. Its role is defined in the Bank of Canada Act as codified in 1985. The bank is led by a Governing Council consisting of the Governor, Senior Deputy Governor, and four Deputy Governors. Each Deputy Governor has specific responsibilities and reports to the Senior Deputy Governor and Governor.