The Role of Commercial Banks
Commercial banks engage in the following activities:
- processing of payments by way of telegraphic transfer, EFTPOS, internet banking, or other means
- issuing bank drafts and bank cheques
- accepting money on term deposit
- lending money by overdraft, installment loan, or other means
- providing documentary and standby letter of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures
- safekeeping of documents and other items in safe deposit boxes
- sales, distribution or brokerage, with or without advice, of: insurance, unit trusts and similar financial products as a “financial supermarket”
- cash management and treasury
- merchant banking and private equity financing
- traditionally, large commercial banks also underwrite bonds, and make markets in currency, interest rates, and credit-related securities, but today large commercial banks usually have an investment bank arm that is involved in the mentioned activities.
Read more about this topic: Commercial Bank
Famous quotes containing the words role, commercial and/or banks:
“To win by strategy is no less the role of a general than to win by arms.”
—Julius Caesar [Gaius Julius Caesar] (100–44 B.C.)
“It is only by not paying one’s bills that one can hope to live in the memory of the commercial classes.”
—Oscar Wilde (1854–1900)
“Power, in Case’s world, meant corporate power. The zaibatsus, the multinationals ..., had ... attained a kind of immortality. You couldn’t kill a zaibatsu by assassinating a dozen key executives; there were others waiting to step up the ladder; assume the vacated position, access the vast banks of corporate memory.”
—William Gibson (b. 1948)
Related Subjects
Related Phrases
Related Words