Sunday, February 10, 2008

Commercial Banking

A commercial bank in the first place debts are deposits and insurance assets, loans and borrowing. As the United States Banking Act of 1971, the "commercial bank" is an institution that supply, demand comes from deposits and loans. Therefore, a money market, investment funds is not an investment bank, because it did not originate loans. In addition, a finance company is not a bank, because there is no need for deposits. The term "commercial" is different from a bank from an investment bank.

Your commitments are a priority for deposits and insurance assets, loans and borrowing. As the United States Banking Act of 1971, the "commercial bank" is an institution that supply, demand comes from deposits and loans. "Therefore, the money market is an investment fund is not a bank, because he did not come ready. In addition, a finance company is not an investment bank because it is not necessary to deposits.

The term "commercial" is different from a bank from an investment bank.

Commercial Banking, the activities are different from those of the investment bank, including the underwriting, as a mediator between the issuers of securities and public investment, facilitating counsel in the areas of mergers and others, such as operations reorganizations and acquisitions, and as a broker for institutional clients.

Commercial banks are called because they are in the form of loans to specialize in trade and industry. Commercial banks are held by private investors such as shareholders or bank holding companies. Most commercial banks are held by bank holding companies. The sole purpose of the banks is a victory. Commercial banks are held by private investors, shareholders, or company referred by bank holding companies

In addition to banks, other features since the end of 20 years, most of the commercial banks in developing countries were in micro-finance market, in which it also reduced rate loans is likely not as collateral for small businesses, small farmers and micro-entrepreneurs. In this way, Commercial Banking has become a key area of the modern economy, respect for the financial needs of all segments of the economy.

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