Banking : Commercial Banks And Central Bank



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Contents

Commercial Bank


Description: A commercial bank offers financial services like deposits, loans, and investments to individuals and businesses.


Functions of a Commercial Bank


Description: Commercial banks accept deposits, provide loans, create credit, and offer financial and utility services.


Central Bank


Description: A central bank regulates currency, controls credit, manages reserves, and supervises commercial banks and policies.


Methods of Credit Control


Description: Credit control methods include bank rate, open market operations, cash reserve ratio, and moral suasion.


Repo Rate vs Bank Rate


Description: Repo rate is for short-term loans with securities; bank rate is long-term without collateral.


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