When we speak of a central bank it won’t be the run of the mill commercial banker seeking out deposits from the public that can be leveraged for lending at a profit. Basically, the central bank would be the lender to the lenders – the so called lender of the last resort. Its basic function is to pump funds into banks that suffer a shortfall in financing. Therefore, we may see central banks as the protector of the nation’s banking system, also one that ensures that the economy remains stable in the light of inflationary pressures.
The central bank thus assumes the role of a regulatory authority,
When you go about sourcing money from external lenders and funding agencies, the interest rate leaves a deep imprint on your financial decision. To cite a small example, would you not consider parking more funds in a savings account if the bank offered you 10 percent and not the measly 0.5 percent that you presently get? Similarly, you may not hesitate to try a new credit card offering 3 percent interest rate, but you would balk at taking on credit cards that charge interest exceeding 30 percent. On the other hand, the urgency of the moment coupled with your desperation for funds may compel
What Is A Bank?
A bank is a financial institution that is officially authorized to manage loans, personal and business consumer accounts and transactions, offer checks, provide financial advice and assistance, and provide all around general financial services.
There are many different traditional banks to choose from Large National Brands to Local Banks with a few branches. There are benefits to both but primarily a larger chain of banks will have more locations and ATMs and a local bank may offer you more competitive interest rates for being a resident or may offer