Central Bank Role in Supervising The Banking System

With regard to the banking sector, the Central Bank monitors the work of banks and makes sure that they lend the funds available to them and invest them in a way that does not harm the funds of depositors and within the policies that follow precautionary measures. The central bank is the one that issues licenses for banks and can withdraw these licenses or impose penalties on violating banks, in addition to its management and control over the banking sector in any country, as it is considered the bank of banks, the central bank is the main department in the country to determine and manage monetary policy in a way that contributes to helping The economy is to achieve the required balance and meet the economic goals that the  state aspires to. The idea of central banks is linked to expanding reliance on borrowing to finance trade and commercial exchanges and expanding cash beyond the scope of being covered by precious metals such as gold and silver.