Definition
- Banker to the government
- As banker to the government, the central bank holds the government's accounts, through which the money it raises and spends passes.
Example
Can you think of an example of banker to the government?
HM Treasury's National Loans Fund is an account at the Bank of England, which reports every payment into and out of it daily to the Comptroller and Auditor General.
Test yourself
Can you name the five functions of a central bank?