A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit.
It can also refer to a bank or a division of a large ban, which deals with corporations or a large or middle-sized business, to differentiate it from a retail bank and an investment bank. Commercial banks include private sector banks and public sector banks.
History of banking
The name bank derives from the Italian word banco "desk/bench", used during the Italian Renaissance era by Florentine bankers, who used to carry out their transactions on a desk covered by a green tablecloth. However, traces of banking activity can be found even in ancient times.
In the United States, the term commercial bank was often used to distinguish it from an investment bank due to differences in bank regulation. After the Great Depression, through the Glass–Steagall Act, the U.S. Congress required that commercial banks only engage in banking activities, whereas investment banks were limited to capital market activities. This separation was mostly repealed in 1999 by the Gramm–Leach–Bliley Act.
The general role of commercial banks is to provide financial services to the general public and business, ensuring economic and social stability and sustainable growth of the economy.
In this respect, credit creation is the most significant function of commercial banks. While sanctioning a loan to a customer, they do not provide cash to the borrower. Instead, they open a deposit account from which the borrower can withdraw. In other words, while sanctioning a loan, they automatically create deposits.
Commercial banks accept various types of deposits from the public especially from its clients, including saving asccount deposits and fixed deposits. These deposits are returned whenever the customer demands itthemr after a certain time period.
Commercial banks provide loans and advances of various forms, Such as [overdraf] facility, cash credit, bill discounting, money at call, etc.
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vignette|La banque Monte dei Paschi di Siena, plus vieille banque du monde. Une banque est une institution financière qui fournit des services bancaires, soit notamment de dépôt, de crédit et paiement. Le terme de banque peut désigner de façon générale le secteur bancaire. Les banques jouent un rôle essentiel dans la stabilité et le fonctionnement du système financier, et sont en général soumises à une importante surveillance prudentielle de la part de l'État.
vignette|Conversion de monnaie Le Forex (en anglais Foreign exchange market ou FX), ou marché des changes, est le marché sur lequel les devises dites convertibles (paire de devises) sont échangées l’une contre l’autre à des taux de change qui varient en permanence. On ne peut pas échanger de devises mais on achète une monnaie numérique €-$ qu'il faut ensuite revendre en euro. Il n'y a pas de conversion possible de l'euro en dollar. Le Forex est fait pour parier à la hausse ou à la baisse d'une devise face à une autre.
A debit card, also known as a check card or bank card, is a payment card that can be used in place of cash to make purchases. The card usually consists of the bank's name, a card number, the cardholder's name, and an expiration date, on either the front or the back. Many of the new cards now have a chip on them, which allows people to use their card by touch (contactless), or by inserting the card and keying in a PIN as with swiping the magnetic stripe.
Couvre les bases de la comptabilité financière, y compris les bilans, les comptes de résultat, les actifs, les passifs et les capitaux propres.
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