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

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 »

Are commercial banks publicly regulated?

Commercial banks are regulated by federal government regulatory agencies. The Federal Deposit Insurance Corporation (FDIC) was created to regulate commercial banks that are not members of the feder... 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 »

Reserve Requirements for Commercial Banks?

The Federal Reserve requires commercial banks to keep a predetermined amount of funds on hand against deposit liabilities, according to the Board of Governors of the Federal Reserve System. This is... Read More »