Okuzeka
Finance & Banking vocabulary · Banks & Institutions

Commercial bank

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, commercial bank means: A bank that takes deposits from people and businesses and uses them to make loans and offer payment services.

In Turkish: ticari banka, mevduat bankası

How it is used

Used in economics, regulation and the news to separate ordinary banks from central banks and investment banks. Most high-street banks with branches are commercial banks.

Example sentences

  1. Commercial banks borrowed heavily from the central bank last week.

  2. Unlike investment banks, commercial banks are funded mainly by customer deposits.

Common collocations

  • commercial bank lending
  • large commercial banks
  • commercial bank deposits
  • central bankA country's or region's main monetary authority, which issues money, sets the policy interest rate and works to keep prices and the financial system stable.
  • retail bankingBanking services for individual customers, such as current accounts, savings, cards, personal loans and mortgages.
  • corporate bankingBanking services for large companies, such as loans, cash management, trade finance and foreign exchange.
  • depositMoney that you put into a bank account, or the act of putting it there. For a bank, customer deposits are its main source of funding.

More terms: Banks & Institutions

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This page explains English vocabulary for learners. It is not financial advice.