By: Michael E. Martinez

By definition, a commercial bank is one in which accepts deposits, makes business loans and offer other products related to the two. Also, checking, savings and time deposits are offers made by commercial banking institutions. These banks are ran to seek a profit and some may be included within the Federal Reserve System.

Commercial banks receive revenue from many sources including check writing, trust account management fees, investments, loans and mortgages. A growing number of banks also receives revenue from consumer use of Internet banking services. It also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds.

This is what people normally call a "bank". The term "commercial" was used to distinguish it from an investment bank. Since the two genres of banks no longer have to be separate companies, some have used the term "commercial bank" to refer to banks which focus mainly on companies. These banks have a unique place because it is their role to furnish an important part of the money supply.