Commercial bank


Commercial banking is defined as those companies that are responsible for offering numerous clients the services and monetary operations that are approved by national laws. The main role of commercial banks is to serve as intermediary agencies in the process of transferring money between the supply and demand of the assets that an individual owns; These banks have savings accounts where a person can store their money constantly, as well as provide monetary loan opportunities through bank loans, in this way the receipt of money from people who wish to store it is classified as an action. “Passive”, while approving loans of a sum of money that will be fixed to an interest charge would be an “active” action.

The working methodology of commercial banks is directly subject to the statutes or laws established by each nation, as well as these are governed by the rules imposed in the central bank of each country; Within all the functions of a commercial bank, the exchange of international currencies for national currencies, collection of taxes and the leasing of a safe can also be included for those people who handle large sums of money. As well as the possible payment methods that said bank offers you, such as through: issuance of checks, debit or credit card, in order that the client does not have the need to carry with him large sums of cash then offering monetary security measures.

The acquisition of a commercial bank translates into having a stable company, there are very few occasions in which a bank suffers losses, this is due to its work methodology and the way in which money constantly enters these institutions.

It is worth mentioning that commercial banking is not a modern practice, these institutions suffered constant modifications over the years; It is also important to recognize that through commercial banking the economy that develops in a nation is perceptible; This is because they are working directly on financing and collecting part of the money that circulates throughout the country.