Commercial bank

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A commercial bank is a financial institution that accepts deposits from the public and provides loans to its clients in order to facilitate their commercial affairs, including transactional and trading activities involving monetary and non-monetary exchanges, while generating profit. In common usage, the term bank generally denotes a commercial bank that is authorized to accept deposits, extend credit, and provide a range of financial services. A commercial bank is a financial institution that provides wholesale banking to corporations or large or middle-sized businesses, as well as retail banking services to individual customers, distinguishing it from investment banks. Commercial banks include private sector banks and public sector banks. However, central banks function differently from commercial banks, despite a common misconception known as the "bank analogy". Unlike commercial banks, central banks are not primarily focused on generating profits and cannot become insolvent in the...

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