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

A national bank typically refers to a commercial bank that operates within a specific country, providing financial services like loans and deposits to the public and businesses. In contrast, a central bank is the government institution responsible for managing a nation's currency, money supply, and interest rates, as well as overseeing the banking system and implementing monetary policy. While national banks focus on profit and customer service, central banks aim to ensure economic stability and growth. Examples of central banks include the Federal Reserve in the U.S. and the European Central Bank in the Eurozone.