What is diffinition of commercial bank?

Answer 1

Commercial Banks are the financial intermediaries of the economy. Most commercial banks provide the following services to customers:

1. Savings accounts
2. Checking accounts
3. Fixed Deposits
4. Home Loans
5. Personal and Auto loans
6. Credit Cards
7. etc

Answer 2

A commercial bank is a criminal enterprise that borrows money from the Federal Reserve at a nominal rate of interest (.5%) then re-loans it to individuals at usurious rates (see 33% rate credit cards and 300% pay day loans!). They also engage in other fraudulent activities such as reselling mortgages that do not conform to underwriting standards. These mortgages are combined into investment vehicles, the bank pays a complicit rating agency such as Standard & Poor's to declare them AAA rated Securities. The banks pocket huge fees and the ultimate purchasers are left with worthless paper. In some instances their incredible greed almost takes down their own business, but their paid for representatives in Congress and the White House bail them out with taxpayer's money. When caught in this scam, they wrap themselves in the American Flag, fund morons like the Tea Party groups and yell Socialism! to avoid any reasonable regulation and oversight. Think of them as The Sopranos with less violence and flashy jewelry.

Answer 3

What is Commercial Banking?

Commercial Banking in North America was initiated with the Bank of Philadelphia in the creation of the "Pennsylvania Pound" paper currency. The Bank of Pennsylvania purchased "Bills of Exchange" at discount and improved circulation of them by issuing a uniform bank note against them. "Bills of Exchange" are instruments which finance and clear production goods for readily demanded consumption items. They are not contracts, and therefore cannot be enforced under Contract law. The use of "Bills of Exchange" is governed by the Law of Bills and Notes going back to Acts of British Parliament in the 17th Century.

"Bills of Exchange" are short term instruments which in their 90 day maturity period are matched to the length of yearly seasons. By the acceptance of a "Bill of Exchange" a producer promises to pay a certain amount on a certain date to a supplier. These "Bills of Exchange" can be discounted for immediate cash. The holder of a "Bill of Exchange" upon the maturity date is entitled to receipt of payment.

The Bank of Philadelphia introduced a paper bank note to improve the circulation of the "Bills of Exchange". To prevent any over issuance, the bank had to withdraw promptly any amount of bank notes in excess of the value of un-matured "Bills of Exchange" in their vault. The scrupulous honesty with which the bank was managed explains the great success of this colonial currency or script. Two prominent signers of the U.S. Constitution, Benjamin Franklin and George Clymer are linked to the operation of the Bank of Philadelphia.

Adam Smith in his book "The Wealth of Nations" published in 1776 remarked that the value of the "Pennsylvania Pound" never fell below that of gold and silver. The "Pennsylvania Pound" was a currency which was also used by many of the North American colonists outside of Pennsylvania. "Bills of Exchange" were cleared with foreign gold and silver coin.

The success of the "Pennsylvania Pound" was detrimental to the mercantile interests represented in the British Parliament which outlawed the use of the "Pennsylvania Pound" for payment of taxes in 1765. This act destroyed the effectiveness of the colonial currency. The British Parliament by this act more than by any other contributed to the eventual revolt of the North American colonists.

With the provisions in Article I of the U.S. Constitution, the founders provided for "commercial banking" by acknowledging a universal monetary and accounting standard and by prohibiting the States from issuing legal tender currency.

The state chartered "commercial banks" are responsible for the extraordinary commercial and industrial progress in the United States. They were required by their charter to circulate bank notes only in relation to the value of un-matured "Bills of Exchange" held, and be capitalized with a certain amount of gold to withstand redemption of the "redeemable" bank notes issued.

The Federal Reserve Act of 1913 improved on the "commercial banking" system by issuing a franchise to create a national currency to a Federal Reserve Banking System which was comprised of twelve regional Federal Reserve Banks. The FRA intended to improve circulation of "Bills of Exchange", as well as to protect the "commercial banking" system against predatory banking practices.

In the 1920s, the Federal Reserve Bank of New York under their president Benjamin Strong started to violate the 1913 Federal Reserve Act by monetizing ineligible U.S. Treasury debt. Under the original Federal Reserve Act only gold and "Bills of Exchange" within the system were eligible to be monetized. The persistent violation by the NY FED in monetizing "Anticipation Bills" (U.S. Treasury debt) led to the stock market collapse in 1929 and the banking crisis in the early 1930s.

With the confiscation of gold by FDR's Executive Order 6201, the market to discount "Bills of Exchange" was destroyed. This in turn destroyed the "commercial banking" system. In January of 1934, the U.S. Congress modified the Federal Reserve Act of 1913. It henceforth allowed the monetization of sovereign debt in creating the Federal Reserve Notes by the Federal Reserve System. This ushered in the era of "central banking" in the United States.

Under "central banking" system, a difficulty exists in bringing the "irredeemable" currency into circulation. The FED found the solution by authorizing the former "commercial banks" to issue mortgage, business and consumer loans and thereby make them the distributors of the FRN.

The monetization of debt under a "central banking" system over time leads to the destruction of the system due to the power of compound interest. Once interest on the accumulated debt goes "exponential", the system must collapse. The only reasonable solution then is to return to a viable "commercial banking" system.

Answer 4

A commercial bank is one that is authorized by the Central bank of that country to provide banking services within the borders of the country. For ex: A commercial bank in India has to be approved by the Reserve Bank of India. In USA, it has to be approved by the Federal Reserve. Some of the different services available from commercial banks to its customers are:

1. Checking/Current account

2. Savings accounts

3. internet/Mobile Banking

4. ATM Cards

5. Check Books

6. Deposit Accounts

7. Loans

8. Credit Cards etc

Answer 5

this is a financial institution that is involved in money transmission services and it is owned by share holders

Answer 6

the sole purpose of commercial banks is to make profits

Answer 7

A commercial bank is a bank that provides banking services to large businesses and corporations. Some of their functions are accepting deposits, granting loans, and funds investment.