Difference between Central Bank and Commercial Banks

Difference between Central Bank and Commercial Banks

 Central BankCommercial Bank
1It does not accept deposit from the publicThey accept deposits from the public
2It formulates and executes monetary policies.They do not formulate monetary policies
3Central bank is owned by the government.They are usually owned by the public or government
4It is accountable to the federal  government.They are accountable to shareholders
5It manages the national debt They do not manage national debt
6It is responsible for issuing of currency.They do not issue currency
7Only one central bank exists in a country.Many commercial banks exist in a country
8It is not set up to make profitThey are set up to make profit
9It serves as banker to the banks and governmentsThey serve as bankers to individuals and institutions
10It is establishment by Act of parliamentThey are established by incorporation

The central bank is completely involved in both the money and capital market. It makes money available to other institutions involve in both money and capital markets as a lender of last resort. This means that the commercial banks and other institutions involved in money and capital markets can go to the central bank to raise loan when they are short of money or when they have financial difficulties.

  1.     economic tools for nation building
  3. factors affecting the expansion of industries
  4. bud
  5. mineral resources and the mining industries
  6. demand and supply
  7. types of demand curve and used
  8. advertising industry
  9. factors of production
  10. entrepreneur
  11. joint stock company


English Conversation Practice - In ...
English Conversation Practice - In The Bank

let us know what you think

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: