Commercial Bank – Get the Best Of Commercial Bank And Trust;-
Commercial Bank activities in so many ways differ from that of investment Bank and mortgage banking mostly in the united state due to regulation. In commercial banking, we talk more about services like making Business loans, rendering of Basic investment products, and accepting deposits.
There are situations where commercial Bank is just a bank that offers singular commercial services. At other time, a commercial bank can be a division of a bigger bank that handles, accepting and giving of loans services to large corporation, medium-sized Business against the normal small business banking that deals with retail banking or merchant bank.
History Of Commercial Bank
The word Bank started from the Italian word Banco which is translated as desk/bench in the earlier Renaissance era when bankers do their banking business using a desk covered in a green tablecloth. There are traces that in the ancient time, there were banking activities and had continued to move to the subsequent era.
Functions of Commercial Banks
One of the significant roles of commercial Bank is the creation of credit. They provide financial services to general public and commercial business owners. Their activities help in sustaining the economic growth and social stability within the society.
Accepting various types deposit from the members of the public mostly their client. Open a savings account, recurring account deposit and fixed deposits for their client. They return these deposits on demand by their customers within a certain period of time.
They give out loans in the form of overdraft facility, bill discount, cash credit, money at call etc. These loans come with demands and terms to ensure proper loan security.
Other financial services gotten from commercial banks includes:
The clearing of cheque, interest warrant and dividends
They also help in purchase and sales of securities.
Commercial bank also accepts bill for payments like water bills, gas bills, phone bills and more.
You can depend on them in the provision of merchant banking facility.
These banks can act as referees for their client.
They can make payment of rents and that of insurance premium and more.