1. Centralized model
National Bank is a crucial part of the national cash distribution cycle. It operates through its branch network as a main storage, processing, and distribution center. The Central Bank is present and controls the entire cash circulation cycle. This model is mainly used in developing countries.
2. Joint venture model
A joint venture is created between the national bank and commercial bank. Both sides also act as shareholders. This joint venture deals with all aspects of trade and logistics of the national currency, thus optimizing operating costs. This model is often the main direction for the further development of cash circulation in developing countries.
3. Partial delegation model
The National Bank delegates certain cash handling operations to affiliated contractors. Authentication, sorting, as well as the distribution of cash for the commercial sector (commercial banks, merchants, and collection services). Currently, a significant number of countries in the world use this model for partial outsourcing of their activities.
4. Full delegation model
Commercial banks and independent CIT companies take responsibility (and cost) for all transactions. The National Bank is not present in the money supply cycle, except for the processes associated with the issue and control of the disposal of banknotes and coins. The countries of the Eurozone, as well as the United Kingdom, Norway, and the United States, operate approximately in this model.