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Banks download (Central Bank download (The bankers bank (The central bank…
Banks 
Central Bank
The government bank
The central bank operates as a banker to the government, performing the same functions as a commercial bank does for its customers. Hence, as the government's bank, it maintains the bank accounts of the central government. The central bank also manages public sector debt and represents the government in international financial markets. This has become an important function of central banks because such intervention can help to stabilize the external value of a nation's currency.
The bankers bank
The central bank acts as the bank for other banks in the country. This function includes overseeing the cash reserves of commercial banks. This means that all banks in the country must have their accounts with the central bank, enabling the central monetary authority easily to manage the claims made by banks against each other.
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Commercial Bank
Primary functions
Making advance
Commercial banks provide advance (loans) to their customers. These includes overdrafts ( a banking service that allows approved customers to withdraw more money than they actually have in their account ) and mortgages ( long - term secured loans for the purchase of assets such as commercial and residential property.
Accepting deposits
Commercial banks accept deposits from their customers, including private individuals, businesses and governments. Time deposits tend to attract higher rates of interest than sight deposits for deposit holders. Business also deposit their cash in commercial banks for the convenience of their own financial operations.
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Credit creation
Banks increase money supply in an economy by making money available to borrowers.Credit allows the borrower ( or debtor ) to gain purchasing power ( money ) by promising to pay the lender ( or creditor ) at a future time. Credit creation enables commercial banks to generate considerable additional purchasing power from their cash deposits.
Secondary functions
Offering additional financial services such as tax advice, foreign exchange dealings and the buying and selling of shares
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Providing safety deposit boxes for customers to safeguard highly valued possessions, including jewellery and important documents such as wills.
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Providing money transfer facilities, such as transferring money to an overseas bank account or to pay various bills, such as telephone, electricity, gas and water bills.
Collecting and clearing cheques on behalf of their clients
Offering credit card facilities for the convenience of customers ( private individuals and commercial clients ).
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Offering internet banking facilities, such as online bill payments, wired bank transfers between bank accounts, and the online purchase of shares and foreign currencies.
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