What is the difference between a public financial institution and a private financial institution?

What is the difference between a public financial institution and a private financial institution Introduction: The Financial Landscape Greetings, ladies and gentlemen! In today's discussion, we'll be exploring the intricate world of financial institutions. Specifically, we'll be focusing on the differences between public financial institutions and their private counterparts. These institutions play a pivotal role in shaping our economy, and understanding their distinctions is crucial for any individual interested in the financial realm. Defining Public Financial Institutions Public financial institutions, as the name suggests, are entities that are owned and operated by the government. They are established with the primary objective of serving the public interest. These institutions are often created through legislation and are subject to government oversight and regulation. Examples of public financial institutions include central banks, development banks, and government-sponsored enterprises. The Functions of Public Financial Institutions Public financial institutions have a wide range of functions. One of their primary roles is to provide stability and ensure the smooth functioning of the financial system. Central banks, for instance, are responsible for monetary policy, including the regulation of interest rates and the management of the money supply. Development banks, on the other hand, focus on providing long-term financing for infrastructure projects and other development initiatives.