Central Bank Money

The term central bank money is synonymous with the term base money. It denotes money which is generated by a central bank (like the Swiss National Bank) or a monetary authority.

Central bank money is the opposite of the terms commercial bank money and book money which denote the portion of currency composed of bank balances and loans generated by commercial banks through fractional reserve systems.

More on this topic:
Swiss bank bundle comparison

Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.
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