country and play an important role in the economy of the country Typical

Country and play an important role in the economy of

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country and play an important role in the economy of the country. Typical functions include implementing monetary policy, managing foreign exchange and gold reserves, making decisions regarding official interest rates, acting as banker to the government and other banks, and regulating and supervising the banking industry. These banks buy government debt, have a monopoly on the issuance of paper money, and often act as a lender of last resort to commercial banks. The term bank nowadays refers to these commercial banks. The Central bank of any country supervises controls and regulates the activities of all the commercial banks of that country. It also acts as a government banker. It controls and coordinates currency and credit policies of any country. Thus banks are classified on the basis of their functions in which they are specialized. But it must be noted that Commercial Banks are now providing services of agricultural banks, they are
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providing loans for industries as industrial banks, they are even expanding their services into foreign exchange replacing the foreign exchange banks. Therefore the commercial banks are raising their capabilities for attracting a large number of customers.
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  • Winter '17
  • WELCH, IVO

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