Question

What is meant by Commercial Banking

Answer 1

Answer:

A commercial bank is a financial institution which performs the functions of accepting deposits from the general public and giving loans for investment with the aim of earning profit.

Answer 2

Generally,commercial banking deals with any financial activity or conduct which deals with the acceptance of financial deposits,funds withdrawal,operation of bank savings account,financial loan offerings and other basic financial services.

Explanation:

• Commercial banking is mainly associated with commercial banks and other financial institutions which offer basic financial services or facilities to customers such as opening a normal savings account,financial deposits and withdrawal,offering various financial loans and investment schemes,different deposit schemes such as Fixed Deposit(FD) and other important financial services and facilities.
• Commercial banks and financial institutions in any country are regulated and administered by the central bank,which is a major source of financial liquidity for these banks and institutions.Commercial banks also make money or capital through the interest payments on various loans it offers to the customers.
• Commercial banks also mobilize or utilize money or capital from the funds deposited by customers on their savings account and any other types of deposit accounts.
• Nowadays,a major chunk of commercial banking is increasingly conducted online through various official bank and financial apps.