Commercial bank - Financial definition
Concise definition of the term commercial bank
A commercial bank is a financial institution that accepts deposits, offers checking and savings accounts, and provides loans to individuals and businesses.
Comprehensive definition of the term commercial bank
Commercial banks play a crucial role in the financial system by facilitating the flow of money and credit in the economy. They provide a range of services including managing deposits, issuing credit and debit cards, offering mortgages and personal loans, and extending business financing. These banks generate revenue through interest on loans and fees for various services.
Examples of commercial banks include JPMorgan Chase, Bank of America, HSBC, BNP Paribas or Deutsche Bank. In addition to serving individual consumers, commercial banks are integral to business operations, offering corporate banking services such as cash management, foreign exchange, and trade finance. Their activities are regulated to ensure stability and protect depositors' funds.