A commercial bank is a kind of financial institution which carries all the operations related to deposit and withdrawal of money for the general public, providing loans for investment, etc. These banks are profit-making institutions and do business only to make a profit.
There are three different types of commercial banks.
- Private Bank
- Public Bank
- Foreign Bank
Listed below are the functions of a commercial bank
- Accepts deposit
- Provides Loan and Advances
- Credit Cash
- Discounting bills of exchange
- Overdraft Facility
- Purchasing and Selling of the Securities
- Paying and Gather the Credit