The system is generally structured in a "two-tier" hierarchy: 1. Central Banks
Focus on business services (working capital, trade finance). banking system
The banking system is a complex network of institutions designed to manage the flow of money, provide credit, and ensure financial stability within an economy. It acts as a bridge between those who have extra funds (depositors) and those who need them (borrowers). 🏛️ Core Components of the Banking System The system is generally structured in a "two-tier"
Responsible for printing and distributing national currency. banking system
The apex body that regulates the entire system (e.g., the Federal Reserve in the US or the RBI in India). Controls the money supply and inflation.
Provides emergency loans to commercial banks. 2. Commercial & Retail Banks
The system is generally structured in a "two-tier" hierarchy: 1. Central Banks
Focus on business services (working capital, trade finance).
The banking system is a complex network of institutions designed to manage the flow of money, provide credit, and ensure financial stability within an economy. It acts as a bridge between those who have extra funds (depositors) and those who need them (borrowers). 🏛️ Core Components of the Banking System
Responsible for printing and distributing national currency.
The apex body that regulates the entire system (e.g., the Federal Reserve in the US or the RBI in India). Controls the money supply and inflation.
Provides emergency loans to commercial banks. 2. Commercial & Retail Banks