A commercial bank is a type of financial intermediary and a type

of bank. Commercial banking is also known as business banking.

It is a bank that provides checking accounts, savings accounts,
and money market accounts and that accepts time deposits.
After the implementation of the Glass-Steagall Act, the U.S.
Congress required that banks engage only in banking activities,
whereas investment banks were limited to capital market
activities. As the two no longer have to be under separate
ownership under U.S. law, some use the term "commercial bank"
to refer to a bank or a division of a bank primarily dealing with
deposits and loans from corporations or large businesses. In
some other jurisdictions, the strict separation of investment and
commercial banking never applied. Commercial banking may
also be seen as distinct from retail banking, which involves the
provision of financial services direct to consumers. Many banks
offer both commercial and retail banking services.
 Definition
 Commercial banks are in the business of
providing banking services to individuals,
small businesses and large organizations.
While the banking sector has been
consolidating, it is worth noting that far
more people are employed in the
commercial banking sector than any other
part of the financial services industry.
 Trends & Needs
 Broad Business Understanding and People
Skills Needed
 Accounting and Writing Skills are Crucial
 High Grades less important than work ethic
 International talent is in high demand at
money-center banks.
 Corporate Investment Products in High
Demand
 Days of Easy Hours Long Gone
The role of commercial banks

 processing of payments by way of telegraphic transfer, EFTPOS,

internet banking, or other means
 ssuing bank drafts and bank cheques
 accepting money on term deposit
 Lending money by overdraft, installment loan, or other means
 Providing documentary and standby letter of credit, guarantees,
performance bonds, securities underwriting commitments and
other forms of off balance sheet exposures
 Safekeeping of documents and other items in safe deposit boxes
 distribution or brokerage, with or without advice, of insurance,
unit trusts and similar financial products as a “financial
supermarket”
 cash management and treasury services.
 merchant banking and private equity financing
 traditionally, large commercial banks also
underwrite bonds, and make markets in
currency, interest rates, and credit-related
securities, but today large commercial banks
usually have an investment bank arm that is
involved in the mentioned activities
 Types of loans provided by
commercial banks
Secured loans Unsecured loans

Mortgage loan bank overdrafts

corporate bonds

credit card debt

personal loans
 Secured loan
A secured loan is a loan in which the borrower pledges
some asset (e.g., a car or property) as collateral (i.e.,
security) for the loan.
 Mortgage loan
A mortgage loan is a very common type of debt
instrument, used to purchase real estate. Under this
arrangement, the money is used to purchase the
property.
 Unsecured loan
Unsecured loans are monetary loans that are not secured
against the borrowers assets (i.e., no collateral is
involved). These may be available from financial
institutions under many different guises or marketing
packages
 bank overdrafts
 corporate bonds
 credit card debt
 credit facilities or lines of credit
 personal loans
 Corporate bonds
 A corporate bond is a bond issued by a corporation. It
is a bond that a corporation issues to raise money in
order to expand its business. The term is usually applied
to longer-term debt instruments, generally with a
maturity date falling at least a year after their issue
date. (The term "commercial paper" is sometimes used
for instruments with a shorter maturity.)