Business Banking

AAA

DEFINITION of 'Business Banking'

A company's financial dealings with an institution that provides business loans, credit, savings and checking accounts specifically for companies and not for individuals. Business banking is also known as commercial banking and occurs when a bank, or division of a bank, only deals with businesses. A bank that deals mainly with individuals is generally called a retail bank, while a bank that deals with capital markets is known as an investment bank.

INVESTOPEDIA EXPLAINS 'Business Banking'

In the past, investment banks and retail/commercial banks had to be separate entities, under the Glass Steagall Act, but now a single bank can deal with business banking, retail banking and investment banking. The Glass-Steagall Act is also known as the Banking Act of 1933, and was introduced to manage speculation. Parts of the act were repealed in 1999, making it no longer illegal for an investment bank to also engage in business/commercial and retail banking.

RELATED TERMS
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which ...
  2. Merchant Bank

    A bank that deals mostly in (but is not limited to) international ...
  3. Retail Banking

    Typical mass-market banking in which individual customers use ...
  4. National Bank

    In the United States, a commercial bank chartered by the comptroller ...
  5. Bank Fees

    Many banks charge nominal fees for various services, such as ...
  6. Society of Actuaries (SOA)

    The SOA is a professional organization for actuaries in the U.S., ...
Related Articles
  1. Bag The Best Bank Account
    Insurance

    Bag The Best Bank Account

  2. The Rise Of The Modern Investment Bank ...
    Insurance

    The Rise Of The Modern Investment Bank ...

  3. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  4. Online Banks: Lower Costs And Little ...
    Savings

    Online Banks: Lower Costs And Little ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center