Commercial Banks |
A commercial bank is a type of financial intermediary and a type of bank. Commercial bank has two possible meanings:
- Commercial bank is the term used for a normal bank to distinguish it from an investment bank.
Since the two types of banks no longer have to be separate companies, some have used the term "commercial bank" to refer to banks which focus mainly on companies.
It raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits. It makes loans to businesses and consumers. Its primary liabilities are deposits and primary assets are loans and bonds.
- Commercial banking can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual members of the public (retail banking).
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