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Function
A commercial bank is authorized to serve the following functions:
• Receive deposits - took money from individuals and businesses (known as depositors)
• Disbursement of payment - payment under the guidance of its depositors, such as honoring a check
• collection - a bank will act as your agent to collect the money from a bank account to pay for you, such as when someone pays you by check drawn on a different bank account
• Investing money into stocks for a return
• Protection of money - the bank is considered to be a safe place to store of your wealth
• Maintain and service checking account its depositors and saving
• Maintaining custody accounts - accounts managed by one person, but for the sake of others, such as a trust account
• Loans
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