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What is a Commercial Bank?

Commercial Bank Overview

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A commercial bank is a bank that works with businesses.

Commercial banks handle banking needs for large and small businesses, including:

  • Basic accounts such as savings and checking
  • Lending money for real and capital purchases
  • Lines of credit
  • Letters of credit
  • Lockbox services
  • Payment and transaction processing
  • Foreign exchange

Commercial banks often function as retail banks as well, serving individuals along with businesses.

Businesses have unique needs that consumers don’t have. For example, some businesses need a commercial bank that can accommodate a large volume of credit card payments and cash deposits.

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