The Czech National Bank (CNB) is the central bank and financial market supervisor in the Czech Republic with its headquarters in Prague, and a member of the European System of Central Banks. The CNB sets monetary policy, issues banknotes and coins and manages the circulation of the Czech koruna, the payment system and settlement between banks. It also performs supervision of the banking sector, the capital market, the insurance industry, pension funds, credit unions and electronic money institutions, as well as foreign exchange supervision.