Can a central bank run out of money?
A run on the bank—a sudden withdrawal of deposits as currency or, in earlier times, as gold or silver—can cause banks to run out of reserves and force their closure. Bank panics of this kind occurred many times.
Who profits from the central bank?
Revenues earned on its assets (e.g., interest income, revaluation gains) are used to cover interest on its liabilities and other expesnes (e.g., loan loss and general risk provisions, staff expenses). The resulting central bank profits are transferred to the central government (treasury) in the form of dividends.
What is the point of a central bank?
Central banks play a crucial role in ensuring economic and financial stability. They conduct monetary policy to achieve low and stable inflation. In the wake of the global financial crisis, central banks have expanded their toolkits to deal with risks to financial stability and to manage volatile exchange rates.