08-09-2017, 11:36 AM
Retail banking also known as consumer banking. It is the provision of services by a bank to individual consumers, rather than to corporations, corporations or other banks. Services offered include savings and transaction accounts, mortgages, personal loans, debit cards and credit cards. The term is generally used to distinguish these banking services from investment banking, commercial banking or wholesale banking. It can also be used to refer to a division or department of a bank dealing with retail customers.
In the United States, the term commercial bank is used for a normal bank to distinguish it from an investment bank. After the Great Depression, through the Glass-Steagall Act, the US Congress required banks to only participate in banking, while investment banks were limited to capital markets activities. This separation was repealed in the 1990s. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans of companies or large companies, as opposed to individual members of the public (retail banking).
In the United States, the term commercial bank is used for a normal bank to distinguish it from an investment bank. After the Great Depression, through the Glass-Steagall Act, the US Congress required banks to only participate in banking, while investment banks were limited to capital markets activities. This separation was repealed in the 1990s. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans of companies or large companies, as opposed to individual members of the public (retail banking).