Commercial Bank
Definition of 'Commercial Bank'A financial institution that provides services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and basic investment products like savings accounts and certificates of deposit. The traditional commercial bank is a brick and mortar institution with tellers, safe deposit boxes, vaults and ATMs. However, some commercial banks do not have any physical branches and require consumers to complete all transactions by phone or Internet. In exchange, they generally pay higher interest rates on investments and deposits, and charge lower fees. |
|
Investopedia explains 'Commercial Bank'Commercial banking activities are different than those of investment banking, which include underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations, and also acting as a broker for institutional clients. Some commercial banks, such as Citibank and JPMorgan Chase, also have investment banking divisions, while others, such as Ally, operate strictly on the commercial side of the business. |
Related Definitions
Articles Of Interest
-
The Evolution Of Banking
Banks are a part of ancient history. Find out how this system of money management developed into what we know today. -
Are Your Bank Deposits Insured?
Learn how the FDIC is helping to keep your money in your pockets. -
How Basel 1 Affected Banks
This 1988 agreement sought to decrease the potential for bankruptcy among major international banks. -
Cut Your Bank Fees
Find out how to get the bank to pay you for using their services, not the other way around. -
How Line of Credit Works
A line of credit is an arrangement where a bank offers a maximum loan amount that the borrower can draw upon at any time. The borrower – which can be an individual, business or government ... -
Financial Career Options For Professionals
Find out if spreading your wings to try a new career will make you soar or fall flat. -
Small Business Financing: Debt Or Equity?
There are two sources of financing for small businesses: debt and equity financing. This article explains both. -
Banks Will Be Under More Stress In 2012
The FDIC has proposed new regulations for banks. -
The Banking Industry In 2012
Major banks in 2012 can expect to lose customers as they struggle with the Dodd-Frank Act and new fees. -
Why You Should Stick With The Big Banks
Big doesn't always mean bad. We tell you four reasons why.
Free Annual Reports