Commercial Banks: These are institutions that accept deposits from customers (individuals/companies), provide loans/credit facilities (mortgages/auto loans), offer checking/savings accounts along with other basic financial services.
Central Bank: A central bank, like the Federal Reserve, is responsible for overseeing and regulating the banking system, conducting monetary policy, and maintaining financial stability.
Deposit Insurance: Deposit insurance is a guarantee provided by governments or agencies (like FDIC in the US) that protects depositors' funds up to a certain amount if a bank fails. It helps promote confidence and stability in the banking system.