**BUK**RG There are various types of financial institutions serving myriad purposes, and a commercial bank is a financial intermediary offering basic banking services. These include taking up time deposits, providing savings accounts, transactional accounts, etc. A commercial bank derives income through collection of deposits from its clients on time deposits (also known as time deposits), checkable deposits and savings deposits.These types of financial institutions typically advance loans to business entities and other clients, and also engage in the acquisition of government bonds and corporate bonds. One of the core activities of commercial banks involves providing customers with mortgage loans. This is done in an arrangement where the bank receives security in the form of a lien on the title of a property until such time the loan is fully liquidated. And as can be expected, in the event that the debtor reneges on his obligation, the bank is legally entitled to repossess the property and dispose it, to recoup its funds. Commercial banks have only started to intensify their involvement in home financing due to changes in policies and laws governing their activities. Otherwise, they previously focused on commercial and consumer loans, while other financial institutions covered the mortgages market. With changes in the banking laws and policies, commercial banks found themselves with more fertile ground on which to freely expand their services. And to fully capitalize on the rich mortgages market, these institutions often establish dedicated departments focusing in the area of real estate loans. The basic services offered by commercial banks are wide ranging, and they include: - safekeeping their customer's documents and other items in safe deposit boxes - distribution, sale or brokerage of unit trusts, insurance,and other financial products - treasury services - private equity financing and merchant banking - underwriting bonds, and other investment related services in credit-related securities, etc. - handling telegraphic transfer, EFTPOS, internet banking, etc. - issuing bank checks as well as bank drafts - taking up funds on term deposit - lending funds via installment loans, overdraft, credit card debt, personal loans and other credit facilities - rendering performance bonds, securities underwriting obligations, letter of credit, guarantees, including other off balance sheet exposures The term commercial bank is often used in relation to a bank or a division of a bank administering deposits as well as loans derived from large business entities. Commercial banking can be regarded as distinguishable from retail banking, which directly renders financial services to customers. A number of financial institutions provide both commercial and retail banking services.
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