Summary

The role of the central bank as the regulator of banking has mainly been addressed in the context of administrative law. Although the administrative function of the central bank cannot be underestimated, the central bank, based on its tasks, forms the heart of national banking rather than a part of the public administration hierarchy. The central bank ensures the liquidity of credit institutions and thereby influences the whole economic climate serving the purpose of ensuring the stability of the national monetary and financial system. In order to implement the monetary policy successfully, the legal measures should ensure the independence of the central bank which is the basis for the transparency of its activities. The co-effect of independence and transparency must be reflected in the build-up of the central bank.

It is the duty of the legislator to provide for the objectives and tasks of the central bank. Of different objectives of the central bank, the most significant in recent years is to ensure price stability. However, it is not correct to regard it as the only objective of the central bank. The central bank will attain its objectives through the performance of the tasks entrusted to it. The definition and implementation of the monetary policy, the issue of currency, the conduct of foreign currency operations, the holding and management of foreign reserves, the operation of payment systems, supervision of credit institutions, market regulation, the collection of statistics, and consultations to the government in economic-political issues are the main measures implemented by the national central bank, which have been dealt with in the article.