A commercial bank is basically a normal high-street bank, called “commercial” to distinguish it from an investment bank. A commercial bank is otherwise known as a retail bank as its clients are ordinary retail customers like you and me.This is what people normally call a “bank”.
Since the commercial and investment banks no longer have to be separate companies (Since the abolition of the Glass Steagal Act), some have used the term “commercial bank” to refer to banks which focus mainly on companies. We define commercial banking here as the activities in a bank which focus on both retail and commercial customers and companies.
In commercial banking the bank raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits. It makes loans to businesses and consumers from these deposits. The commercial bank also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds.
Commercial banking refers to a bank, or a division of a bank, that mostly deals with the deposits and loans from corporations or large businesses as well as normal individual members of the public (retail banking).
Commercial banks engage in the following activities:
- Processing of payments by way of telegraphic transfer, internet banking or other means
- Issuing bank drafts and bank cheques
- Accepting money on term deposit
- Lending money by way of overdraft, installment loan or otherwise
- Providing documentary and standby letter of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures
- Safekeeping of documents and other items in safe deposit boxes
- Currency exchange
- Sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products as a “financial supermarket”.
How do I get a graduate scheme / internship / entry level job or career in Commercial, Corporate & Retail Banking?
Obtaining a graduate scheme, internship or entry level role in commercial, corporate or retail banking can be very challenging and competitive – though very achievable by getting your application, CV, interview and general approach right. You can guarantee that ninety percent of applicants for commercial, corporate or retai banking roles will not know how to apply, so getting your application in the top ten percent makes things a lot more achievable.
Approaching the company in the right way will make all the difference. Combining the right approach with a strong interview (and in some cases assessment centre) writ a strong focused tailored CV will go a long way. Make sure you have gone through the free videos on this sight by entering your name and email address in the top right of this screen underneath the video. Once you have filled this in you will have instant access to everything you need to secure your career in commercial, corporate or retai banking.
Roles in Commercial, Corporate & Retail Banking
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Business and Corporate Banking
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Personal Banking
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Private Banking
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Mortgage Advisor
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Insurance Broking
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Credit Risk Analyst
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Banking Cashier
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Foreign Exchange Cashier
Top 10 Graduate Recruiters in Commercial, Corporate & Retail Banking (In no order)
- Lloyds Banking Group
- Barclays
- HSBC
- Royal Bank of Scotland
- Citi Bank
- ING
- Nationwide
- Standard Chartered
- Halifax
- Banco Santander
