What is the importance of commercial banks?

Answer 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 »

Top Q&A For: What is the importance of commercial banks

What kind of banking services do commercial banks offer?

Commercial banks offer customers different banking services to attract deposits from customers. In turn, commercial banks use deposits to provide financing services for borrowers including consumer... Read More »

What is the Importance of Commercial Advertising?

Advertising, getting the word out, is of paramount importance to every business. TV commercials offer marketers a bigger bang, although sometimes in exchange for a bigger buck. Still, commercials d... Read More »

What percent do commercial banks need to have in excess reserve?

Banks do not have requirements for "excess reserves." Rather, a bank has requirements for how much cash it must hold in reserve, which depends on its size. Banks with smaller deposits can be exempt... Read More »

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

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 »