The main similarity between commercial banks and other financial institution is?
Answer Details
The main similarity between commercial banks and other financial institutions is the acceptance of customers' deposits and making investments or loans on their behalf. Both commercial banks and other financial institutions such as credit unions, savings and loans associations, and investment banks are in the business of accepting deposits from customers, and using those deposits to make investments or loans that generate a profit. This process of taking in deposits and making investments or loans is a fundamental part of the financial industry, and is what enables individuals and businesses to access the funds they need to operate and grow. While other financial institutions may specialize in specific areas of finance, such as investment or real estate lending, they all share this basic function of taking in deposits and making investments or loans on behalf of their customers.