2.4.2 Commercial banks and investment banks
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Two types of bank, two different jobs

Two types of bank, two different jobs

Flow diagram showing commercial banks linking savers to borrowers and investment banks linking issuers to investors, with UK regulators above

A financial market channels funds from people with surplus money to those who need finance. Banks are financial intermediaries, but commercial banks and investment banks do not perform the same role.

2.4.2 Commercial banks and investment banks Lesson

  1. A Level
  2. /Economics
  3. /2.4.2 Commercial banks and investment banks