A central bank is a supreme financial institution responsible for overseeing the monetary policy, currency issuance, and regulatory framework of a nation or a group of member states. Unlike commercial banks that deal directly with individual consumers and corporations for profit, a central bank acts as a banker to commercial banks and governments, managing interest rates, controlling money supply, regulating commercial banking practices to ensure financial stability, and acting as a lender of last resort during economic crises. Examples include the Federal Reserve in the United States and the European Central Bank, which focus strictly on macroeconomic stability and national economic welfare.