Commercial banking & Investment banking

Commercial banking and Investment banking

Introduction

Types of bank:

• - retail banking
• - business banking
• -corporate banking
• - private banking
• - investment banking

Commercial bank

• Commercial bank's definition:

A commercial bank is a type of retail bank that provides services, such as accepting deposits, giving business loans and basic investment products.

It can also refer to a bank, or a division of a large bank, which deals with corporations or large/middle-sized business to differentiate it from a retail bank and an investment bank. Commercial banks include private sector banks and public sector banks.

Bank’s functions

• To collect and clear cheques, dividends, and interest warrant
• To make payments of rent, insurance premium
• To deal in foreign exchange transactions
• To purchase and sell securities
• To act as the trustee, attorney, correspondent and executor
• To accept tax proceeds and tax returns