commercial bank

This term distinguishes a profit-seeking financial institution from a central bank, which manages a nation's monetary policy, or a credit union, which is member-owned and non-profit. It carries a connotation of corporate professionalism and accessibility to the general public.

In a regulatory context, the term emphasizes the bank's role in the "commercial" sector, specifically its ability to create credit through the fractional reserve system. It is typically used in formal financial discussions, legal documents, and business news to specify the type of entity providing liquidity to the market.