Retail
banking is when a bank executes transactions directly with consumers,
rather than corporations or other banks. Services offered include
savings and transactional accounts, mortgages, personal loans, debit
cards, and credit cards. The term is generally used to distinguish these
banking services from investment banking, commercial banking or
wholesale banking. It may also be used to refer to a division of a bank
dealing with retail customers and can also be termed as Personal Banking
services.
In the US the term Commercial bank is used for a normal bank to distinguish it from an investment bank. After the great depression, through the Glass–Steagall Act, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital markets activities. This separation was repealed in the 1990s. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the public (retail banking).
