||Government has the ownership of Central Bank.
||Commercial Banks are controlled privately. However in Pakistan some banks were nationalized in 1974.
||The management & employees are appointed by the Government.
||The management and other employees are appointed by the board of directors.
||Central bank cannot receive the deposit of the public
||Commercial banks can receive the deposit of the public.
||The central bank provides the loan to the government and commercial banks.
||Commercial banks provide the loans to the customer.
||Economic development is the aim of the central bank.
||Earning profit is the primary aim of the commercial bank.
||No. of Banks
||There is only one central bank for every country
||Every country has many commercial banks
||Central bank has no branch in foreign country
||Commercial banks may have branches in foreign country.
||The government and commercial banks are the account holders of central bank
||The individuals, partnership, limited companies are the account holders.
||The central bank advises the government on financial matters
||The commercial banks advise their customers for investment, business consultancy etc.
||Central bank has the sole right of note issue
||Commercial bank cannot issue the notes.
||Exchange control is the responsibility of the central bank
||Exchange control is not the responsibility of commercial bank.
||Control of credit
||Central bank has the authority on control of credit
||Commercial bank has no authority on control of credit
||Control & growth of Banking
||It is the duty of the central bank to control the growth of banking
||Control and growth of banking is not the responsibility of the commercial bank.
||The central bank makes the foreign payment on behalf of the government
||Commercial banks makes the payments on behalf of the customers.
||Central bank keeps the metallic reserves like gold
||Commercial banks do not keep the metallic reserves.
||It transfer money from one place to another for the government and banks.
||It transfer money from one place to another for the people.
||Evening services are not provided by the central bank
||Commercial banks provide evening banking services.
||The central bank cannot be closed up even if working at loss
||Commercial banks hold reserve with central bank. So that it could help them in difficulties.
||Lender last resort
||Central bank acts as a lender of last resort for commercial bank
||Commercial banks hold reserves with central bank, so that it could help them in difficulties.
||Usually the laws governing central bank are difficult from that which governs commercial banks. In Pakistan SBP is governing by SBP Act 1956
||Commercial banks are governed by different laws. In Pakistancommercial banks work under companies Ordinance 1984.