Banker to Banks

What is a Commercial Bank?

A commercial bank is a bank whose main functions are to accept demand deposits and to make loans, thereby facilitating the transfer of funds in the economy. Typically, commercial banks make loans to business firms, private individuals, and government related entities. They also issue time and savings deposits and operate trust departments. Though commercial banks do not issue currency, they do issue money in the form of demand deposits, hence they have the power of creating and destroying money.

  1. What does it mean when we say that the Central Bank acts as a Clearing House?
  2. What is a Commercial Bank?
  3. How many commercial banks are there in The Bahamas?
  4. What is the Prime Rate and who sets this Rate?
  5. What have been the changes in the Prime Rate over the past few years?
  6. Does the Central Bank set the interest rates, fees and other charges that commercial banks charge their customers?

Available FAQs