How is a commercial bank different from a central bank?
Differences between Commercial Bank and Central Bank:
|Central Bank||Commercial Bank|
|The central bank is the apex bank and is also known as the bank of all the banks.||A commercial bank functions under the control of the central bank.|
|It focuses on social welfare.||It focuses on profit maximisation.|
|It does not accept deposits.||It accepts deposits from the public and provides loans to individuals and households.|
|It issues currency.||It has no authority to issue currency|
|It is an advisor to the government on monetary issues.||It is not an advisor.|
Concept: Nationalisation Vs. Privatisation of Banks
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