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What is Commercial Banks – Definition and Meaning

What is Commercial banks:
What is Commercial banks:

What is Commercial Banks:

         It is a financial institution that provides services for businesses, organizations and individuals. Services include offering current, deposit and saving accounts as well as giving out loans to businesses.


           Commercial banks are defined as a bank whose main business is deposit-taking and making loans. This contrasts with an investment bank whose main business is securities underwriting, asset management and securities trading.

The commercial banks are work under the central bank of a country.

           It is one primarily engaged in deposit and lending activities to private and corporate clients in wholesale and retail banking. Other services typically include bank and credit cards, private banking, custody and guarantees, cash management and settlement as well as trade finance.

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Examples of Commercial banks:

Khyber Bank, National Bank, Muslim commercial bank (MCB),Bank of America etc.

          Whether you are looking for a home loan, business loan, or a unique deposit product, It has a product designed to meet your needs.

Functions of Commercial Banks:

          The functions are  different which includes deposits from public, lending to public, Overdraft, Discounting of Bills of Exchange, Investment of Funds, Agency Functions and Miscellaneous Functions.

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Salman Qureshi

Salman Qureshi is an Accountant by profession & he loves to write on Commerce & Management Sciences Subject to assist Students. Hope you guys will like his effort.

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