What is a commercial bank ?

A commercial bank is a type of bank that provides services such as deposit acceptance, acceptance of business loans and the provision of investment products used as business profits.

It can also apply to a bank or a large bank branch dealing with corporations or large or medium-sized companies to distinguish it from a retail bank and investment bank.



Functions

• Commercial banks accept various types of deposits from the public, especially from their customers, including savings on account deposits, repeated account deposits and fixed deposits. These deposits are returned when the customer requests it or after a certain period of time.
• Commercial banks provide various forms of loans and advances, including overdraft, cash credit, invoice discounting, money after a call, etc. They also provide demand and term loans to all types of customers against adequate security