What is Commercial Bank?
Commercial Bank:
Banks that are open to the public It accepts deposits and provides short-term loans for business, trade, and other needs, called commercial banks. That is why commercial banks are also called short-term loan businesses. A commercial bank is a business institution, which accepts money as deposits from individuals or various institutions and earns profit by transacting money for business purposes.Documentary Definition:
Different economists have given different definitions of the commercial banking system. Below are some of their definitions:
Mr. Roger says, “A bank that deals in money and commodities for profit is called a commercial bank. "
Professor H. L. According to Hart, “An institution that pays the value of checks issued on it in the ordinary course of business and holds money as current is called a commercial bank.”
Professor H. L. According to Hart, “An institution that pays the value of checks issued on it in the ordinary course of business and holds money as current is called a commercial bank.”
According to eminent economist Professor Sayers, “Commercial Banks are not only financial institutions but important institutions of finance Producers too.” So the main objective of a commercial bank is to earn profit by conducting banking business. of the public Commercial banks collect more interest from borrowers than the interest they pay on deposits. Such money is for business purposes on a commercial basis Commercial banks earn huge profits through remittances. However, apart from earning profits, commercial banks are involved in the country's business, trade, industry, and others Assist in economic development by providing loans to the needy. As an example of a commercial bank, the Midland, Westminster, Barclays, Lloyds, and The National Provincial, five banks of Great Britain can be mentioned. They are Big Also known as Five. The commercial banks of Bangladesh are Sonali Bank, Rupali Bank, Janata Bank, Pubali Bank, Agrani Bank, Uttara Bank, National Bank, Prime Bank, Dutch | Bangla Bank, Arab Bangladesh Bank, etc.