A commercial bank is a financial institution that accepts deposits from the public and gives loans for the purposes of consumption and investment to make a profit .
14-897: Metbank , formerly known as Metropolitan Bank of Zimbabwe , is a commercial bank in Zimbabwe . It is licensed by the Reserve Bank of Zimbabwe , the central bank and national banking regulator. The headquarters and main branch of Metbank are located in Metropolitan House, at 3 Central Avenue, in Harare the capital and largest city of Zimbabwe. The geographical coordinates of the bank's headquarters are: 17°49'31.0"S, 31°03'02.0"E (Latitude:-17.825278; Longitude:31.050556). Metbank serves large corporations, small to medium enterprises (SMEs), as well as individuals. The bank partners with MasterCard to issue debit and credit cards. As of December 2016, Metbank
28-488: A bank or a division of a larger bank that deals with corporations or large or middle-sized businesses, to differentiate from retail banks and investment banks . Commercial banks include private sector banks and public sector banks. However, central banks function differently from commercial banks, despite a common misconception known as the "bank analogy". Unlike commercial banks, central banks are not primarily focused on generating profits and cannot become insolvent in
42-889: A loan, they automatically create deposits. Regulations In most countries, commercial banks are heavily regulated and this is typically done by a country's central bank . They will impose a number of conditions on the banks that they regulate such as keeping bank reserves and to maintain minimum capital requirements . They also require some capital Commercial banks generally provide a number of services to its clients; these can be split into core banking services such as deposits, loans, and other services which are related to payment systems and other financial services. Along with core products and services, commercial banks perform several secondary functions. The secondary functions of commercial banks can be divided into agency functions and utility functions. Agency functions include: Utility functions include: Core banking Core banking
56-732: Is a banking service provided by a group of networked bank branches where customers may access their bank account and perform basic transactions from any of the member branch offices. Core banking is often associated with retail banking and many banks treat the retail customers as their core banking customers. Businesses are usually managed via the corporate banking division of the institution. Core banking covers basic depositing and lending of money and include functions such as transaction accounts , loans , mortgages and payments . Banks make these services available across multiple channels like automated teller machines , Internet banking , mobile banking and branches. Core banking software
70-404: Is a key part of banking software and network technology that allows a bank to centralise its record keeping and provide core banking services. Core banking became possible with the advent of computer and telecommunication technology that allowed information to be shared between bank branches quickly and efficiently. Before the 1970s it used to take at least a day for a transaction to reflect in
84-430: Is to provide financial services to the general public and business, ensuring economic and social stability and sustainable growth of the economy. In this respect, credit creation is the most significant function of commercial banks. While sanctioning a loan to a customer, they do not provide cash to the borrower. Instead, they open a deposit account from which the borrower can withdraw. In other words, while sanctioning
98-621: The balance of payments, and withdrawal. This software is installed at different branches of the bank and then interconnected by means of computer networks based on telephones , satellite and the Internet. Gartner defines a core banking system as a back-end system that processes daily banking transactions, and posts updates to accounts and other financial records. Core banking systems typically include deposit, loan, and credit-processing capabilities, with interfaces to general ledger systems and reporting tools. Core banking applications are often one of
112-457: The bank's servers, and the customer could withdraw the deposited money from any of the bank's branches. Advancements in Internet and information technology reduced manual work in banks and increased efficiency. Computer software is developed to perform core operations of banking like recording of transactions, passbook maintenance, interest calculations on loans and deposits , customer records,
126-838: The largest single expenses for banks and legacy software is a major issue in terms of allocating resources. Spending on these systems is based on a combination of service-oriented architecture and supporting technologies. Modern Core Banking Systems tend to follow "lean core" philosophy, where Core itself has only basic functionalities like General Ledger and transaction posting, all other services are covered by satellite applications. Many banks implement custom applications for core banking. Others implement or customize commercial independent software vendor packages. Systems integrators implement these core banking packages at banks. While larger financial institutions may implement their own custom core, community banks and credit unions tend to outsource their core systems to system providers. While there
140-515: The real account because each branch had their local servers, and the data from the server in each branch was sent in a batch to the servers in the data center only at the end of the day (EOD). Over the following 30 years most banks moved to core banking applications to support their operations creating a Centralized Online Real-time Exchange (or Environment) (CORE ). This meant that all the bank's branches could access applications from centralized data centers . Deposits made were reflected immediately on
154-569: The same way as commercial banks in a fiat currency system. The name bank derives from the Italian word banco 'desk/bench', used during the Italian Renaissance era by Florentine bankers, who used to carry out their transactions on a desk covered by a green tablecloth. However, traces of banking activity can be found even in ancient times. In the United States, the term commercial bank
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#1733093566901168-462: The website of the Reserve Bank of Zimbabwe, the major shareholders in the stock of the bank include the following: as of January 2021, Metbank maintains a network of branches at the following locations: The chairperson of the bank's board of directors is Dr. Linda Chipunza, a non-executive director. The managing director is Belmont Ndebele. Commercial bank It can also refer to
182-540: Was a medium-sized financial services provider, with an asset base of US$ 200.7 million, with shareholders' equity of US$ 55.9 million. Metbank Limited has been involved with the introduction of digital banking , branchless banking, and internet banking and agency banking, while keeping the number of brick-and-mortar branches low. As of February 2018, Metbank had a network of banking agents numbering over 150, both inside and outside Zimbabwe. Many of these agents are women and youth, who otherwise would be unemployed. According to
196-613: Was often used to distinguish it from an investment bank due to differences in bank regulation. After the Great Depression , through the Glass–Steagall Act , the U.S. Congress required that commercial banks only engage in banking activities, whereas investment banks were limited to capital market activities. This separation was mostly repealed in 1999 by the Gramm–Leach–Bliley Act . The general role of commercial banks
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