Commercial Banks - Lines of Business

in #money7 years ago

Commercial banks refer to a network of banks that provide a range of banking services to the individuals and commercial businesses.

Commercial banking could be broadly classified into

  1. Unit Banking - limited to a particular area / location
  2. Branch Banking - has multiple branches across different locations / areas

Banks.jpg

The following list provides the different lines of businesses that the Commercial banks handle:

  1. Asset Management - Bank Deposits, Mutual Funds
  2. Commercial Banking - Real Estate Finance, Export Finance, Trade Finance, New Business Finance
  3. Retail Banking - Deposits from Individuals, Loans to Individual, Small Business Loans, Card Services (Debit & Credit)
  4. Agency Services - Custody Operations, Corporate Trust Services, Corporate Agency (Issuer and Paying Agents), Escrow,
    Depository, Securities Lending
  5. Trading and Sale - Fixed Income, Equity, Foreign Exchange, Commodities, Credit, Funding, Lending. Brokerage
  6. Payment and Settlement - Collections, Payments, Fund Transfer, Clearing, Settlement