What Happens to Commercial Banks When the Fed Raises Interest Rates?

Answer When the Federal Reserve raises interest rates, commercial banks are affected in several ways. These activities by the Federal Reserve will limit the funds banks have for lending and it affects the... Read More »

Top Q&A For: What Happens to Commercial Banks When the Fed R...

What is the importance of commercial banks?

Commercial banks are important intermediaries in the financial marketplace. The flow of funds moving through banks helps generate economic growth, keeps deposits safe and finances long-term purchas... Read More »

Who governs commercial banks?

Commercial banks are subject to regulation of three federal agencies or state bank regulators: The Federal Reserve Board, the Federal Deposit Insurance Corporation and the Comptroller of Currency, ... Read More »

Secondary Functions of Commercial Banks?

Commercial banks, which in most cases provide financial services to consumers as well as businesses, conduct many important activities beyond their primary functions of creating money through lendi... Read More »

How do commercial banks make money?

Commercial banks mediate the flow of money between savers and borrowers to finance a wide selection of business and personal spending. In this role as mediators, commercial banks make money through... Read More »