Why do I want to do commercial banking?
Commercial Banking offers a variety of roles for people interested in helping businesses to succeed. We have a particular focus on companies that aspire to grow internationally and use our global connections and expertise to spot trends in world trade and identify opportunities for our customers.
Commercial banks offer a wide range of services and products to clients, which allows commercial bankers to work with a broad range of customers and specialize in their desired interest area. Commercial banking is a lucrative field that offers several career paths for those interested in the industry.
Commercial banks are an important part of the economy. They not only provide consumers with an essential service but also help create capital and liquidity in the market. Commercial banks ensure liquidity by taking the funds that their customers deposit in their accounts and lending them out to others.
Example 2. "I am interested in banking because it's a good match for my hard-working and highly ambitious nature. I have always enjoyed pushing myself and being part of an environment that celebrates hard work. Being surrounded by intelligent, driven peers also inspires me to do my best work.
Why corporate banking rather than investment banking? Don't say that you “want to work on deals but have a better lifestyle” – instead, say that you like how the corporate banking role is central to everything at a bank, and you want to manage long-term client relationships rather than just working on one-off deals.
In-depth commercial banking interview questions
What types of loans do commercial banks offer? How might you evaluate the creditworthiness of a company? State three issues facing commercial banks today and offer potential solutions. How do you analyze a set of financial statements?
Definition. 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 main purpose of commercial banks is to provide financial services to the general public and also provide loan facilities to the business which helps in ensuring economic stability and growth of the economy. Therefore, we can say that credit creation is the most important purpose of commercial banks.
- Accepting deposits.
- Granting loans and advances.
- Agency functions.
- Discounting bills of exchange.
- Credit creation.
- Other functions.
Commercial bankers are typically required to earn a bachelor's degree in accounting, finance, communications, or another related field, as well as have some work experience in the financial services industry.
Why are you applying for this position?
But when employers ask this common interview question, they usually want you to do one or more of the following: Express your passion for the employer's product, service, or mission. Explain why you would enjoy taking on the responsibilities of the role. Describe how your background will help you succeed in the role.
The best answer to this question includes something that personally stood out to you in your research about the company, what that means to you and the contribution that you could make in the role you are interviewing for. The best answer focuses on the company, not yourself or your needs.
As a commercial banker, your job duties vary, depending on your employer, but usually involve managing corporate accounts, investing business profits, and facilitating loans and financing.
- Understand what a commercial banker is. ...
- Earn a bachelor's degree in a relevant field. ...
- Gain experience. ...
- Obtain a postgraduate degree. ...
- Apply for jobs. ...
- Network. ...
- Attention to detail. ...
- Communication skills.
- Showcase your passion. ...
- Highlight your analytical skills. ...
- Discuss the impact. ...
- Emphasize the challenge. ...
- Show your understanding of the industry. ...
- Link it to your skills. ...
- Highlight the potential for continuous learning. ...
- Discuss the potential for growth.
The general role of commercial banks is to provide financial services to the general public and business, ensuring economic and social stability and sustainable growth of the economy. In this respect, credit creation is the most significant function of commercial banks.
Before you have any interaction with a company you're applying for, always do your research beforehand. This way you can include your commercial awareness knowledge on your CV, application and then factor in your commercial awareness when answering or asking questions at an interview.
Cons. You may have to deal with unruly or disgruntled customers. Depending on role and time period, you may need to work longer hours. There is a potential for stress in dealing with real-world finances and the impact of your decisions.
They have a diverse customer base that requires different kinds of services. Working with a major bank could be an excellent way to kickstart your banking career, leading to some of the best-paying jobs in the industry. Though they may pose challenges at first, there are many career opportunities in the banking sector.
Commercial Banker Salary in California. $108,600 is the 25th percentile. Salaries below this are outliers. $176,700 is the 75th percentile.
What is commercial banking vs retail banking?
Commercial banking is another name for corporate banking, which offers banking services to businesses, governments, and other institutions. While retail banking offers its services to people for personal use, commercial banking serves institutions.
They earn interest on the securities they hold. They earn fees for customer services, such as checking accounts, financial counseling, loan servicing and the sales of other financial products (e.g., insurance and mutual funds).
profit and liquidity.
Commercial banks have the primary functions of accepting customer deposits in the current account, savings, and fixed deposits, lending money as credit to borrowers who then pay with interest, and disbursing payments in the form of transactions and customer payments.
Commercial bank money consists mainly of deposit balances that can be transferred either by means of paper orders (e.g., checks) or electronically (e.g., debit cards, wire transfers, and Internet payments).
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