The Economics of Money and Banking Chapter 7 Central Banks 》》》 Reasons for Emergence of Central Banks 1 Establishment of central banks met the need of issuance of banknotes. Overview of Central Banks A unified organ was needed for a nation's note exchange and clearing. Commercial banks needed the"lender of the last resort". A unified and authoritative institution was needed to supervise and regulate the financial industry A unified organ was needed to meet the government financing needs 3 GUO YING SEM TONGJI UNIVERSITYThe Economics of Money and Banking 3 GUO YING SEM TONGJI UNIVERSITY 1 Reasons for Emergence of Central Banks A unified organ was needed for a nation’s note exchange and clearing. Overview of Central Banks Establishment of central banks met the need of issuance of banknotes. Chapter 7 Central Banks Commercial banks needed the “ lender of the last resort”. A unified and authoritative institution was needed to supervise and regulate the financial industry A unified organ was needed to meet the government financing needs