What explains the difference between retail and commercial banking?
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Banks are financial institutions that accept deposits, provide loans and issue credit cards. Banks make money by lending money to others or by making investments. Commercial banks accept deposits and make loans to companies, organizations and individuals. Retail banks cater to individuals who want to borrow money to buy houses, cars and other consumer goods. Commercial banks are more likely to offer a wide range of financial products and services. Commercial banks tend to be larger and more diversified than retail banks.
Commercial banks are for-profit businesses, which accept savings deposits and make loans to businesses and consumers. They have access to funds from the Federal Reserve bank, which, if needed, can print money.
Retail banks are not-for-profit businesses, which accept savings deposits and make home mortgages and other loans. They do not have access to funds from the Federal Reserve, but instead can take out short-term loans from other banks.