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Functions of a commercial bank

Functions of a Commercial Bank

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Functions of commercial bank — quick explainer

Acceptance of accounts (savings & current)

Opens and maintains savings and current accounts for customers.
Accepts deposits; allows withdrawals and account services.

Enable customers to make payment

Facilities to pay others (cheques, cards, transfers, standing orders).
Reduces the need to carry cash for everyday transactions.

Can lend money

Provides loans and advances to individuals and firms.
Credit helps customers finance consumption and investment.

Travellers’ cheques / foreign currency

Foreign exchange services for travel and overseas payments.
Issues travellers’ cheques or provides currency conversion.

Accepts deposits of valuable

Safe custody services (e.g., lockers) for jewellery and important documents.
Secure storage separate from transaction accounts.

Advice on financial matters

Guidance on saving, borrowing and basic investment options.
Helps customers choose suitable banking products.

Buy / sell shares for customers

Executes share purchases and sales on behalf of clients.
Acts as an intermediary with the stock market (brokerage service).

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