Last Updated On -02 Apr 2025
Commercial banks are essential bank service providers and play a significant economic role. Commercial banks are rapidly evolving with the rise in technology and digital banking. They are the intermediaries between depositors and borrowers, facilitating smooth financial functions.
This blog will help you understand the essential functions of a commercial bank.
A commercial bank acts as a financial institution that offers essential banking services, such as accepting deposits, granting loans, and ensuring smooth operations. They work under government regulations and contribute to the economy. The United States often used “commercial banking” to differentiate from investment banks.
The role of a commercial bank is to provide financial services to the general public.
The key features of a commercial bank are listed below:
The key examples of a commercial bank are:
Commercial banks are a vital part of the economy. The functions of the bank are categorized into primary, secondary, and modern classes. They provide financial services to individuals, businesses, and the government and fund entrepreneurship ventures.
The primary functions of a commercial bank are mainly related to deposits and loans:
The secondary functions help in trade, commerce, and investments:
The modern functions keep up with the technological advancements:
Learning about different bank accounts and their role in our lives is essential. Let us have a look at this video for informative insights!
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Yes, commercial banks provide loans to businesses for expansion, encourage deposit schemes, and support the rural class through digital advancements.
The secondary functions help in trade, commerce, and investments:
Yes, commercial banks support financial services by offering online banking options like UPI and digital wallets.