Define: Commercial Bank

UK Accounting Glossary

Definition: Commercial Bank



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Full Definition of Commercial Bank


A commercial bank is a financial intermediary which collects credit from lenders in the form of deposits and lends in the form of loans. A commercial bank holds deposits for individuals and businesses in the form of checking and savings accounts and certificates of deposit of varying maturities while a commercial bank issues loans in the form of personal and business loans as well as mortgages. The term commercial bank came about as a way to distinguish it from an “investment bank.” The primary difference between a commercial bank and its counterpart is that a commercial bank earns revenue by issuing primary loans from its pool of deposits while an investment bank brings debt and equity offerings to market for a fee. Among its assets, including loans, a commercial bank holds a portfolio of other securities to generate proprietary income.


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Commercial Bank. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/commercial-bank/ (accessed: February 18, 2020).
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Commercial Bank. PayrollHeaven.com. Retrieved February 18, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/commercial-bank/

Definition Sources


Definitions for Commercial Bank are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.