What Is the Function of a Commercial Bank?
A commercial bank is authorized to accept deposits, make loans and offer other products and services such as credit cards, payment transactions and the issuance of letters of credit.Time DepositsCommercial banks offer their customers interest-bearing time deposit accounts that pay interest according to the size and length of the deposit.Checking AccountsChecking accounts are offered by all commercial banks and are used by customers as their primary source of making payments and clearing check deposits. Some types of checking accounts pay interest but have restrictions as to the number of checks that can be written during any one period.LoansCommercial banks serve the lending needs of the communities where they reside. The types of loans offered run the full scope from consumer loans to prime-based loans for large companies.Others Products and ServicesCommercial banks offer a wide range of products and services such as credit cards, letters of credit, overdraft protection, trust service
