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1- Central Bank Main role:
Use of monetary policies to control inflation and deal with the recession to push the national economy. Supervising the banks operating in the country and verifying the application of appropriate tools to preserve the rights of depositors and shareholders.
2- Treasury role:
Optimize the investment and invest the available balances in the bank in different currencies locally and internationally with the purchase and sale of bonds and treasury bills to maximize profits. Providing currency to customers to finance imports. And execute the Forex Transations.
3- Commercial Bank
Providing various and diversified banking services to the commercial and retail customers base to maximize profits and utilize depositors' funds to achieve the proper return on funds deposited to be able to pay the suitable interest for the depositors with implementation of credit risk and compliance rules.
4- Financial Institutions
No Bank financial Institutions mostly familiar are Insurance companies which Presents all insurance services. In addition is the investment companies and brokrage that provides investment services includes wealth management and working on Bonds and stocks
The bank or the central bank, which is responsible for monitoring and directing the banking system in the country (or in a group of countries), generally aims to maintain monetary and financial stability in the country and contribute to the promotion of economic growth and control of inflation and reduction of unemployment. The functions of the Central Bank vary from country to country, but usually include tasks such as: formulation and implementation of the monetary policy of the State, issuing of currency (the national currency), control of the banking system, management of the payment system, regulation of credit and lending, management of the foreign exchange reserve and acting as a bank for the government and commercial banks operating in the country, To the interest rate, which in turn affects the consumer and investment behavior of the individual and society. Falls under the Central Bank: Issuing Bank, Government Bank and Bank of Banks.
In addition to its management and control over the banking sector in any country, the Bank of Banks is the central bank in the State to determine and manage monetary policy to help the economy achieve the desired balance and meet the economic objectives that the country aspires to. The idea of central banks is linked to the expansion of dependence on borrowing to finance trade and trade and to expand cash beyond the coverage of precious metals such as gold and silver.
The first central bank in the world was founded in 1609 in Amsterdam, where the Netherlands was at that time one of the strongest countries in the field of overseas trade. The Central Bank is legally an independent institution that does not follow the government although there is a close relationship between its work and the functioning of the government as an executive authority, but its subordination to the government can lead to monetary policies to help the government solve some of the economic problems at the expense of monetary balance linked to the interests of citizens And the value of their money and savings, which is sometimes the reasons for the dispute between governments and central banks on some things, and the origin of the Central Bank is one of the institutions of the state, which is not subject to the directions of interim government only if it is based on the legislative and legal basis of tuberculosis Legislature. For the banking sector, the central bank supervises the work of the banks and ensures that they lend to the funds available to them and invest them in a manner that does not harm the depositors' funds and within the policies that follow the precautionary measures. It is the central bank that issues bank licenses and can withdraw these licenses or impose sanctions on the violating banks.
