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Business banking is the process of earning income by the sale of goods or services, directly or indirectly, through banking institutions. Banks are very important financial institutions, as they lend money and perform other monetary transactions. There are three types of banks: public, private, and government. Government banks control large amounts of money in the form of loans or treasure accounts. Private banks are generally smaller and are typically owned by a single individual or small group of individuals.



Commercial banking refers to the activities of earning income through banking institutions. Commercial banks provide credit and a safe place to keep extra money. They also offer checking accounts, savings accounts, and certificates of deposits. The most popular banking products are personal and business checking accounts, home and auto loans, investment banks, commercial real estate loans, corporate bonds, foreign exchange (Forex) trading, loans, and purchasing power. A person can open a checking account at a bank or through an ATM for free.


Commercial banks earn interest on money deposited in its checking and savings accounts. Some banks allow customers to open a CD (certified deposit) with them. Commercial banks can also issue loans. Funds can be pulled from the customer's deposits, savings, or CD's. These banks may also issue credit cards for purchase and for online shopping.


Savings accounts are popular with many people. These types of accounts earn interest and are available to make small, one-time, or large financial transactions like buying a car or house. In some cases, a savings account can be converted into a certificate of deposit (CD). However, certificate of deposits have much higher interest rates than savings accounts.


There are many different kinds of bank accounts. The most basic banking services are checking, savings, CD, and money market. Some banks offer international banking and Internet access. In general, all these basic banking services can be found in most branches of the larger banks.


Banking systems are dominated by the big commercial banks. They are the main source of financing for local, state, and federal governments as well as for many private organizations. The central bank, the Federal Bank of the United States, is the chief regulator of banking in the United States. All banks are required to meet the requirements of the Federal Reserve Board.


Central banks control financing through the credit markets. They use a variety of tools, including interest and currency rates, to promote financial activity. The major functions of central banks are to keep national economic goals and policies in view, to reduce financial risk, and to manage the distribution of credit. Commercial banks, unlike central banks, deal directly with customers.


Most banking firms are members of the National Association of Securities Dealers (NASD) or the National Association of State Banks and Currency Brokers (NASCB). These firms are formally associated with the government associations that regulate commercial banks and other financial institutions. In addition to having memberships in government regulatory agencies, commercial banks are restricted by regulations issued by the Federal Reserve Board and are required to maintain orderly books of accounts. The rules and regulations governing commercial banking can be accessed on the internet. Commercial banks can also be foreign members of international association bodies.

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