Definition of commercial banking

The bench is the term used in the field of finance and business to name, on the one hand, the set of economic actions whose mission is to carry out commercial activities, and on the other hand the word is used to designate also, in a broad and general way, set of banks and bankers engaged in financial activities.

Meanwhile, the commercial Bank is the concept that designates that institution financial institution that acts as an intermediary when it comes to the supply and demand of resources financial.

It should be noted that commercial banking offers various services and also liability type operations and active, which are stipulated and regulated through special and current regulations in the nation corresponding.

Among other activities, commercial banks may admit savings from individuals and also their own to their coffers. that legal entities or companies have and place them in checking accounts, savings accounts, fixed terms, according to the arrangement and the need of the

client in question. And on the other hand, commercial banking also stands out when it comes to granting loans and credits to those who approach the Bank to manage them, because they want to boost a business, buy a home, among other alternatives that drive this request.

It is worth mentioning that the admission of money is considered a passive operation, while the delivery of active loans.

But the activity of these banks is not limited only to the activities indicated above, they also carry out other actions such as exchange foreign currencies, collect taxes and services and rent boxes of safety.

The action of commercial banking is closely controlled by the central bankof the corresponding country and there is also a legislation particular in each nation that stipulates how the behavior should be.

On the sidewalk in front of the commercial bank is investment banking , which is the institution that assists its clients in the operations that occur in the capital market.

Topics in Commercial Banking