Central banks - statistics & facts

Central banks play a pivotal role in modern economies, with responsibilities ranging from managing monetary policy to safeguarding financial stability. Central banks control interest rates and the money supply to stabilize prices, foster economic growth, and minimize unemployment. Their role is even more crucial in times of financial crises, when they control important economic functions to prevent systemic collapses, as seen in the 2008 financial crisis. The largest central bank in the world based on total assets is the Federal Reserve System (or Fed), with total assets exceeding 8.5 trillion U.S. dollars at the end of 2022. On the other hand, the Asia-Pacific region holds by far the highest share of international reserve assets. Such assets specifically pertain to foreign exchange assets, highlighting the region’s role in maintaining exchange rate stability and facilitating international trade.

Influencing economies with rates and money supply

Setting interest rates and managing the money supply are some of the primary tools central banks use to control economic conditions. By adjusting interest rates, central banks influence borrowing costs for businesses and consumers. Lowering interest rates encourages spending and investment, stimulating economic growth during downturns. Conversely, raising rates helps curb inflation and excessive borrowing. This is the reason rising inflation is accompanied by higher interest rates, as seen throughout 2022 in a several of countries. Simultaneously, central banks increase or decrease the money supply by purchasing government securities in open market operations, influencing the availability of money in the economy. During recessions, central banks generally increase the money supply, injecting liquidity into the financial system. This explains the exceptionally sharp increase in money supply in the U.S. in 2020 and 2021, which was a response to the economic contractions caused by the COVID-19 pandemic.

Central bank digital currencies (CBDC)

In 2023, central banks were heavily involved in an emerging trend aimed at enhancing cross-border payments. They were trying to develop and issue their own version of digital currency similar to crypto, called CBDC, or central bank digital currency. There are two primary arguments supporting the increasing interest of central banks in the creation of digital currencies. One argument centers around the financial inclusion, or individuals without access to traditional bank accounts in the digital payment ecosystem. This is particularly relevant in regions like Africa – where less than half of the continent’s population was predicted to have a bank account by 2022 - and Latin America. An even more important driver behind the development of CBDC is the preservation of the role central banks in money provision. Nevertheless, CBDC development remains ongoing in numerous countries, with only a limited number having a fully operational version as of 2023.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Jan 10, 2024

Key insights

Largest central bank worldwide by assets
Federal Reserve
Largest central bank worldwide by reserve assets
People's Bank of China
Share of international reserve assets held in Europe
25.4%
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Editor’s Picks Current statistics on this topic

Inflation rate and central bank interest rate in developed and emerging countries in January 2022 and August 2023 (compared to the same month of the previous year)

Financial supervision

Inflation rate and central bank interest rate 2023, by country

Central bank interest rates in the European Union from January 2022 to December 2023, by country

Financial supervision

Central bank interest rates in the European Union 2022-2023, by country

Monthly Federal funds effective rate in the United States from July 1954 to February 2024

Financial Services

Monthly Fed funds effective rate in the U.S. 1954-2024

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European Central Bank
European Central Bank
Fintech in Europe
Fintech in Europe
Fintech in Latin America
Fintech in Latin America
Fintech in Thailand
Fintech in Thailand
U.S. banking industry during recessions
U.S. banking industry during recessions
Banking industry in Latin America
Banking industry in Latin America
Federal Reserve System
Federal Reserve System

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