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commercial bank
noun
: a bank organized chiefly to handle the everyday financial transactions of businesses (as through demand deposit accounts and short-term commercial loans)
Examples of commercial bank in a Sentence
Recent Examples on the Web
The federal funds rate is the target interest rate at which commercial banks borrow and lend their extra reserves to one another overnight.
—Dan Perry, Newsweek, 3 Jan. 2025
The filing also details various financial agreements, including a new commercial bank mortgage loan facility and bond issuances.
—Quartz Bot, Quartz, 8 Nov. 2024
The rate on savings accounts offered to the average customer of Bank of America, to choose a commercial bank at random, is 0.01% a year.
—Michael Hiltzik, Los Angeles Times, 3 Dec. 2024
The filing also details various financial agreements, including a surplus note issued by Vidalia Re and a revolving credit facility with a syndicate of commercial banks.
—Quartz Bot, Quartz, 7 Nov. 2024
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Word History
First Known Use
1910, in the meaning defined above
Dictionary Entries Near commercial bank
Cite this Entry
“Commercial bank.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/commercial%20bank. Accessed 15 Jan. 2025.
Kids Definition
commercial bank
noun
: a bank that accepts deposits that can be withdrawn without notice and creates credit through loans mainly to businesses
Legal Definition
commercial bank
see bank
More from Merriam-Webster on commercial bank
Britannica.com: Encyclopedia article about commercial bank
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