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Banks as a part of economy - Coggle Diagram
Banks as a part of economy
functions of commercial banks
credit opportunities
interest on the investment
place to store cash
connecting link
intermediary in the payment system
Central bank
functions of the central bank
overseeing the supply of money
keeping low level of the inflation
maintaining monetary
policy
responsible for steady economic growth
Instruments of the central bank
On a macro basis
influencing interest rates
participating
in open market operations
issueing national currency
On a micro scale
setting reserve ratio
acting as lender of last resort
criterias
of financial soundness
elasticity
profitability
stability
safety
reserve
management
liquidity
expansion
troubles of bank system
fraudulent of reckless behaviour
bank runs