At its most fundamental level, a central bank is simply a bank which other banks have in common. Small rural banks might each have deposit accounts at a larger urban bank to facilitate their transactions in the city. By this criterion, a financial system might have several central banks. More prosaically, a central bank is usually a government sanctioned bank that has specific duties related to the performance of the macro economy.
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Banking is the process of the financial operations with money and valuable documents in the boarders of the financial institution — bank. With the development of the private property and monetary system, first banks began to appear whose main functions are loaning and depositing. Banking is the most profitable organization, because it controls finance of all kinds and enormous sums of money are concentrated there.