Commercial bank is an entity or financial institution that accepts deposits from individuals and entities

Commercial bank is an entity or financial institution that accepts deposits from individuals and entities (moral persons) on demand and then uses these deposits to open accounts and loans (credits) for the purpose of profit.
As commercial and industrial activity grew, the importance of bank financing to these activities was increased by long and medium term loans, especially in the field of investment as well as foreign trade finance operations.
Commercial banks are sometimes referred to as deposit banks because their most important resources are deposited funds. When they are repaid, they are traded with what they do not have. The most important thing for them nowadays is that the combined banks offer loans that are well above the value of their deposited funds This process, which is the most important function of commercial banks, is called the creation of deposits or the creation of money.
Commercial banks are also known as deposit banks; they are credit institutions that are interested in obtaining individual deposits, in exchange for the ability to withdraw them when they are required. Therefore, these banks deal with short-term credits. The banking institution cannot be considered a commercial bank and withdrawal of financial deposits. These banks also deal with all financial assets only, such as securities, loans, and do not use any kind of real assets.
Thus, the first and primitive form of commercial banks is the cashier who deals with the sale and purchase of foreign currencies and exchange them in national currencies where previously dealing with coins that require the verification of weight and caliber (purity). The emergence of banks has emerged through the development of the activity of the banks who accept deposits (precious metals) against bonds or certificates of deposit in the amount of the deposit and receive a commission thereon and gradually noticed these banks and obtain that these receipts have received a general acceptance in circulation and fulfillment of some obligations which play the role of money In meeting the obligations and that the owners of these deposits do not apply to withdraw their deposits at once However, the rest of the deposits remain frozen at the cashier, so the latter thought of lending them. Hence, the bank in its first form paid interest to the depositors to encourage depositors. After the purpose of the deposit process was to save precious material from theft and loss, The bank’s interest in interest-bearing deposits and the provision of loans on the basis of these deposits are also interest-bearing. The bank’s return is the difference between the interest it charges on loans and the interest it pays to depositors. The first banks appeared in 1587 M in Venice and then Bank of Amsterdam in 1609, and then began to spread banks around the world.
Commercial banks are banking institutions around the world, banking institutions around the world, where they transfer funds to private sector institutions. Financial and monetary resources, money-revolving processes, and job-search processes.
Commercial banks are short-term credit institutions that receive mostly current deposits but Commercial bank to bring as many economic agents (individuals and institutions) as possible to provide a lot of banking services to respond to their needs. These dealers are looking for a safe and reliable depository as needed, as well as seeking a source to meet their obligations and provide them with financial resources to secure their needs.
Commercial banks have two functions:
? Job: Any delay in financial standards and financial branches in the Kingdom of Saudi Arabia.
? The function of creating money: a function that is more important and influential than the first function, as it is the attribute


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