An in-depth definition and overview of Commercial Banks, their functions, examples, frequently asked questions, related terms, resources for further reading, and a fundamental quiz.
A financial intermediary plays a crucial role in the financial system by facilitating the flow of funds between savers and borrowers, ensuring financial stability and efficiency.
A foreign-exchange dealer is an individual or entity engaged in the buying and selling of foreign currency, often working at a commercial bank or financial institution. Their role includes executing currency trades on behalf of clients, managing foreign exchange risks, and sometimes speculating on future currency movements.
A Guarantee Letter is a document issued by a commercial bank that ensures payment of the exercise price of a client's put option if or when an assignment notice is presented to the option seller (writer).
A commercial bank whose charter is approved by the U.S. Comptroller of the Currency rather than by a state banking department. National banks are required to be members of the Federal Reserve System and to belong to the Federal Deposit Insurance Corporation (FDIC).
A trust company is an organization, often associated with a commercial bank, that acts as a trustee, fiduciary, or agent for individuals or businesses in managing various trust-related services.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.