ELI5: Explain Like I'm 5

centralized banking

Centralized banking is when all the money in a country is managed by one main bank. This main bank keeps all the money from different people and businesses in the country in one main place. The main bank also decides how much money is available for people to borrow. This tells people how much money they can spend and how much money they need to save. Centralized banking makes it a lot easier for people to get money if they need it.