Definition

1. Noun:
   • A financial institution that accepts demand deposits and makes loans and provides other services for the public: A commercial bank is a type of bank that primarily deals with deposits and loans from businesses and the general public, offering services like checking accounts, savings accounts, and business loans.

Usage Examples

• Noun:
  • I opened a savings account at a large commercial bank.
  • The company secured a loan from a commercial bank to expand its operations.
  • Commercial banks play a crucial role in the economy by facilitating everyday financial transactions.

Advanced Usage

• "Too big to fail" commercial bank: Refers to a commercial bank so large and interconnected that its failure would be disastrous for the financial system, often leading to government intervention.
  • During the financial crisis, several "too big to fail" commercial banks received government bailouts.

Variants and Related Words

• Bank (n): A broader term for an institution that handles financial deposits, loans, and other services. A commercial bank is a specific type of bank.
• Retail Bank (n): Often used synonymously with "commercial bank," focusing on services for individual consumers and small businesses.
• Investment Bank (n): A different type of financial institution that specializes in large, complex financial transactions like mergers and securities underwriting, contrasting with the deposit-and-loan focus of a commercial bank.

Synonyms

• Retail bank
• High-street bank (Common in British English)

Related Phrases

• Commercial banking: The sector or business activity of operating commercial banks.
  • He has a long career in commercial banking.

Notes on Meaning

• The core, defining function of a commercial bank is accepting demand deposits (like checking accounts where money can be withdrawn at any time) and providing loans. This distinguishes it from other financial institutions like credit unions or investment banks.
• In modern usage, the term often implies a bank that serves both individual consumers and businesses, offering a wide range of financial products.

Noun

1. a financial institution that accepts demand deposits and makes loans and provides other services for the public