#commercialbanks #economics #banks

• Bailout -: A bailout is a loan or a financial assist provided by the bank or individuals to businesses and firms

Commercial Bank

• Commercial bank is a retail bank that provides service to customers, work such as accepting deposits and loans, it also clears out the doubts that customers have

• All the commercial banks are responsible for the deposits by a account holder

Functions Of A Commercial Bank

• Accepting Deposits -: Commercial Banks accept deposits from customers, individuals, businesses or firms and government

• Example - Sight Deposits Or Time Deposits

• Making Advances -: Providing money or credit to an individual or business before the completion of a service or delivery of goods.

• Credit Creation -: Credit creation is the process by which the banks are meant to increase the supply of money in a economy, this makes money available to the borrowers, credit allows the borrower to gain purchase power, in simple terms its a process by which the money supply of a country has increased.

The Secondary Functions Of A Commercial Banks

• Collecting And Clearing Checks

• Offering additional financial services such as tax advice, foreign exchange and etc

• Providing safety to the wealth and accounts of customers