This isn’t an article n°01: Simple differences and similarities between central and commercial banks in banking system./.

Usually; commercial banks are profit-making financial institutions which receive deposits from the public, safeguard them and make loans. And central bank is a bank that undertakes the implementation of the monetary policy of the Government through the control of the money supply and the supervision of the banking system of a country.

The central bank to which Cameroon alongside Gabon, Central African Republic, Congo, Equatorial Guinea and Chad is the Bank of Central African States - BEAC (www.beac.int) with its headquarters (H.Q.) in Yaoundé-Cameroon. And the Central African Banking Commission - COBAC (www.cobacint.com) is a specialized organ which the financial institutions in BEAC member States operate.

Simples Differences between central and commercial banks

Ownership: the central bank is owned and controlled by the Government. Meanwhile a commercial bank is owned by private individuals’ (shareholders)

Objective: central bank doesn’t have a profit motive. It’s the organ, whose the Government uses to control the economy (equilibrium balance of payments, price stability, satisfactory rate of economic growth, equitable distribution of income, etc.) but the commercial banks operate mainly for profit motive.

Issue of currency: only the central bank is allowed by law to issue currency.

Commercial banks serve as bankers to their customers whereas the central bank serves as banker to the commercial banks, the Government and other financial institutions.

 The central bank has a supervisory role over the commercial banks and other financial institutions. And each country can have only one central bank whereas there could be as many commercial banks as possible in a country.

Simples Similarities between central and commercial banks

Commercial banks and the central bank are all financial institutions, they all deal in money.

Commercial banks and the central bank all give out loans and accept deposits except for the fact that the central bank doesn’t accept deposits or give loans to the public. It does this only to the Government and other financial institutions.

Both banks act as agents of payment. The central bank acts as agent of payment on behalf of the Government and commercial banks acts as agent of payment on behalf of their customers.

Both banks influence the supply of money in the economy. While the central bank issues currency, the commercial banks create deposits.

Different commercial banks in Cameroon whit their website address

COUNTRY	COMMERCIAL BANKS	WEBSITE
CAMEROON (has the followingauthorized banks)	Afriland First Bank	www.afrilandfirstbank.com
	SG Cameroon	www.sgbc.cm
	BICEC	www.bicec.com
	Ecobank Cameroon	www.ecobank.com
	SCB Cameroon	www.scbcameroun.com
	Citi Bank	www.citibank.com
	Banque Atlantique (Amity Bank)	www.banqueatlantique.net
	CBC Bank	www.cbc-bank.com
	NFC Bank	www.nfc.novazen.net
	UBC Plc	www.unionbankcameroon.com
	BGFI Cameroon	www.bgfi.com
	Standard Chartered Bank	www.standardchartered.com.cm
	UBA Cameroon	www.ubagroup.com/countries/cm
	Bank of Africa (Bank of Africa plans to file an application for approval from the relevant authorities to start its activities in Cameroon.)	www.bank-of-africa.net
	SME Banking and Agricultural Bank (Approvals obtained, they are being created by the government of Cameroon)	/

[c]: Vincent ONANA [web-log www.financesgroup.canalblog.com] & www.dgtcfm.cm/ 

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country	commercial  banks	website address