A commercial bank is a financial institution that accepts deposits from the public and provides loans for the purposes of consumption and investment to make a profit. It offers various services such as checking and savings accounts, loans, mortgages, basic investment services, and safe deposit boxes to individual consumers and small to midsize businesses. Commercial banks play a critical role in the economy by providing vital capital to businesses and individuals in the form of credit and loans, and they also provide a secure place for people to save money.
Commercial banks are different from investment banks, as they primarily serve small to medium-sized businesses and consumers, earning money through interest and fees. Investment banks, on the other hand, provide services to large corporations and institutional investors, such as helping in merger and acquisition transactions, issuing securities, or providing financing for large-scale business projects.
