Commercial Bank

A commercial bank is a type of financial institution that offers a wide range of financial services to individuals, businesses and other organisations. Commercial banks play a crucial role in the financial system, acting as intermediaries between those who have excess funds (savers and depositors) and those who need financing (borrowers).

Commercial banks play a key role in the economy, facilitating the circulation of funds and supporting economic activity through loans and financing. They are also regulated by financial laws and regulations to ensure their stability, transparency and protection of customers’ interests.

Correlated words

Financial Instrument

A Financial Instrument is a tool or asset used in financial markets for investment, trading, or funding activities, like stocks or bonds.

Purchasing power

Purchasing power refers to the quantity and quality of goods and services that can be acquired with a given amount of money.

Bonds

Bonds are debt securities issued by governments or institutions to raise funds for various financial purposes.

Deficit

A Deficit in economics signifies a situation where expenses exceed revenues, resulting in a state of financial loss.

Default

Default occurs when an entity fails to meet its debt obligations, potentially leading to bankruptcy or other financial repercussions.

CPI

The Consumer Price Index (CPI) is the principal measure used to track inflation, reflecting the average price change over time.

Capital

Capital refers to funds or assets for investment or economic activities crucial for business growth and development.

Capital gain

Capital gain is the profit earned from selling an asset at a higher price than its purchase cost, commonly realised in stock markets.

Central Bank

The Central Bank sits atop the banking hierarchy, working with the government to regulate monetary policy and currency issuance.

Stocks

Stocks are financial instruments representing ownership shares in a company, entitling holders to a portion of the corporate profits.