Commercial bank definition

Investment Banking vs. Commercial Banking: An Overview Commercial and investment banks are both critical financial institutions in a modern economy, but they perform very different functions. Commercial banks are what most people think of when they hear the term "bank." Commercial banks accept deposits, make loans, safeguard assets, and work with many different types of clients, including the general public and businesses. • The critical difference between the two types of banks is who they provide services to. • Commercial banks accept deposits, make loans, safeguard assets, and work with many small and medium-sized businesses and consumers. • Investment banks provide services to large corporations and institutional investors. A bulge bracket bank is the largest of the investment banks. Examples you might be familiar with are Goldman Sachs, Morgan Stanley, Credit Suisse, and Deutsche Bank. These banks are referred to as full-service investment banks and operate across the entire financial spectrum, generally globally. Bulge bracket banks handle clients with more than $500 million in assets but also offer services for some smaller clientele. Investment Banks Commercial Banks Clientele Investors, corporations, government Small and medium sized business Primary Services Assisting institutional investors and corporations with financial needs Loans, mortgage loans, deposit accounts for small and medium businesses Other Services Wealth and asset management, broker services, fin...