key term - Commercial bank

Definition

A commercial bank is a financial institution that accepts deposits, offers checking account services, and makes loans primarily to businesses. It plays a crucial role in the economic development of a country by providing the capital necessary for investment and growth.

Related terms

Checking Account: A deposit account at a financial institution that allows withdrawals and deposits, accessible via checks, automated teller machines, and electronic debits.

Loan: A sum of money borrowed from the bank or another financial institution that is expected to be paid back with interest.

Deposit: Money placed into a banking account for safekeeping, which can be withdrawn by the depositor