Investopedia

Continue to Site »

Commercial Bank

Filed Under » ,
Dictionary Says

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 Says

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.

Articles Of Interest

  1.

    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.

  2. Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.

  3. How Basel 1 Affected Banks

    This 1988 agreement sought to decrease the potential for bankruptcy among major international banks.

  4. Cut Your Bank Fees

    Find out how to get the bank to pay you for using their services, not the other way around.

  5. Financial Career Options For Professionals

    Find out if spreading your wings to try a new career will make you soar or fall flat.

  6. Small Business Financing: Debt Or Equity?

    There are two sources of financing for small businesses: debt and equity financing. This article explains both.

  7. Banks Will Be Under More Stress In 2012

    The FDIC has proposed new regulations for banks.

  8. 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.

  9. Why You Should Stick With The Big Banks

    Big doesn't always mean bad. We tell you four reasons why.

  10. The Banking System

    Banks have been with us as long as money. Here is a detailed breakdown of how banks and the banking system work.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center