The traditional business activity of depository institutions. The core commercial banking activities are accepting deposits and making loans, but there are also a range of other activities commercial banks may engage in because they are considered banking in nature or related to banking. In the US, commercial banking is primarily engaged in by national banks and state banks.

Commercial banking is typically contrasted with investment banking. US entities that engage in commercial banking activities are largely prohibited from engaging in investment banking activities, and vice versa.

For more information, see Practice Note, Commercial Banking.