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Banks play very important role in any financial system. Banks are classified as commercial banks and central banks.
Commercial banks open accounts for their clients and receive money on current and deposit accounts. These funds they use to provide loans and for investment. They also collect cheques, discount bills, transfer money, buy and sell securities and do other commercial operations. The main purpose of commercial banks is to make profit.
The main purpose of central bank is to control monetary system. It helps government provide monetary policy by regulating supply, cost and availability of money and credit. It is the county's leading bank, which act as banker to government. It issue banknotes, regulate activity of retail banks and provide services related to the public debt.
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