Easy difference between central bank and commercial bank

The difference between Central bank and commercial bank can be understood by these factors:

Central bank:

1.It is found 1 bank per country.

2.It checks the activities of commercial banks present in the country.

3.It is non-profitable bank.

4.It is under control of government.

5.They are responsible for any change in banking system at the national level.

6.Example:Reserve bank of india(India)

Commercial bank:

1.There can be lot of banks present in the country.

2.They only check the activity of public which may or may not be part of that.

3.They are profitable banks.

4.They earn wealth by giving high intereset loan to public.

5.There are many banks which are funded by government and some are lead by private organization.

6.Example:

Syndicate bank

Punjab National bank

ICICI bank etc.

Comments

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