What is a commercial bank?

The term commercial bank refers to a financial institution that accepts deposits and offers different banking and financial products. Commercial banks provide these services to people and businesses. Commercial banks make money by providing and earning interest from loans such as mortgages, auto loans, business loans, and personal loans.

What is a commercial banking investment?

In the commercial banking definition of investing, this means making loans and extending credit to people who can pay it back on the bank’s terms. Today, commercial banks can invest in securities and even in issues that they help make public.

What is the difference between commercial and retail banks?

In addition to primary functions, commercial institutions offer services like trade finance, corporate loans, cash management, treasury management facility, agency services, and overdraft facility. In comparison, retail banks offer services like mortgage loans, savings and checking accounts, line of credit, debit cards, and credit cards.