Do you want to know, what is the difference between an investment bank and a commercial bank? The answer is simple, both are banks but there is a difference in the way they work. So, let’s discuss the differences in detail.
How does an investment bank work?
An investment bank is an organization that deals with investments. It is an institution that takes money from people who are willing to invest their money. The bank then invests it for the clients.
What is a commercial bank?
A commercial bank is a bank that provides loans to companies and individuals. It is also called as a commercial bank because it mainly works for the people who are looking for money for their business or personal needs.
What is the difference between investment and commercial banks?
There is a huge difference between investment and commercial banks. Investment banks are banks that deal with investments. They make money through investment. On the other hand, commercial banks are banks that provide loans to businesses and individuals. They also provide money for your personal needs.
Conclusion:
So, now you know the difference between an investment and a commercial bank. Now you can understand how they work. I hope you liked this post. Let me know what you think in the comment section below.