What is the alternative name for commercial banks? (2024)

FAQs

What is the alternative name for commercial banks? ›

Commercial banks are also called 'Joint stock banks' because they are organised in a manner similar to joint stock companies.

It can also refer to a bank or a division of a large bank that deals with corporations or large or middle-sized businesses, to differentiate from retail banks and investment banks. Commercial banks include private sector banks and public sector banks.

State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, Bank of Baroda, Kotak Mahindra Bank, IndusInd Bank, Punjab National Bank, Bank of India, and Canara Bank are the 10 top commercial banks in India. These banks have a huge network of branches, strong customer base and great customer service system.

Commercial banks are generally stock corporations whose principal obligation is to make a profit for their shareholders. Basically, banks receive deposits, and hold them in a variety of different accounts; extend credit through loans and other instruments: and facilitate the movement of funds.

Commercial banks are the familiar institutions catering to the general public's day-to-day financial needs, while merchant banks specialize in providing sophisticated financial services to corporations, governments, and high-net-worth individuals.

The central bank is an institution that is responsible for the monetary policies of the country while the commercial bank provides banking and other financial services to the general public.

Retail banking provides financial services to the general public. Also referred to as consumer or personal banking, this side of the industry allows consumers to manage their money by giving them access to basic banking services, credit, and financial advice.

Who we are. Wells Fargo Commercial Banking provides market-leading solutions, industry expertise, and insights to help enable our clients' growth and success, enhancing the communities we serve.

What is Commercial Bank? A commercial bank is a kind of financial institution that carries all the operations related to deposit and withdrawal of money for the general public, providing loans for investment, and other such activities. These banks are profit-making institutions and do business only to make a profit.

Why are commercial banks called commercial? ›

Commercial banking is a type of banking that provides services for businesses, government agencies, and institutions like colleges and universities to help them grow and profit. Commercial banks make money mainly by loaning money to businesses and earning back interest and fees from these loans.

The 4 different types of banks are Central Bank, Commercial Bank, Cooperative Banks, Regional Rural Banks. You can read about the Types of Banks in India – Category and Functions of Banks in India in the given link.

Commercial Bank

A financial institution that is owned by stockholders, operates for a profit, and engages in various lending activities.

While commercial banks deal directly with the end users, central banks offer their products and services to the government and other commercial banks. There are several differences between commercial and central banks regarding the services and products offered, the clients they serve, their responsibilities, etc.

Retail banks provide services to retail customers, whereas commercial banks provide their services to corporate customers and businesses, though most banking institutions have both a retail and a commercial division.