Commercial Banks

From Reuters Financial Glossary

Financial institutions that operate in wholesale and retail banking and allied markets. Commercial banks attract customer deposits and offer cheque-clearing facilities. They are known as clearing banks in the UK and money-centre banks in the US. They are allowed to borrow from their respective central banks when they need short-term funds. Commercial banks contrast with investment or merchant banks which specialize in raising funds for companies rather than concentrating on lending and the mechanics of money transmission.

See also: Central Bank, Investment Bank