What is the difference between a central bank and a commercial bank?

A central bank and a commercial bank fundamentally differ in their roles and objectives within the financial system. A central bank, such as the Federal Reserve, is the financial authority responsible for conducting monetary policy, regulating the country's money supply, and maintaining stable economic conditions. It serves as the banker to commercial banks and the government, acting as a lender of last resort during financial crises. Moreover, central banks control interest rates and oversee the stability of the banking sector. In contrast, a commercial bank is a profit-driven financial institution that provides banking services to the public and businesses. Commercial banks accept deposits, make loans, manage customer accounts, and offer various financial products. Unlike central banks, commercial banks operate for private gain and focus on generating profits for shareholders.