FUNCTIONS OF CENTRAL BANK AND COMMERCIAL BANKS

Abstract: This article discusses the major functions of central banks and commercial banks, their interrelation in maintaining economic stability, and their roles in promoting economic growth. It explores the mechanisms through which central banks regulate money supply, interest rates, and inflation, while commercial banks serve as intermediaries that mobilize savings and provide loans to stimulate production and trade.

         Key words: Central Bank, Commercial Bank, monetary policy, financial stability, banking system, economic growth