CommercialBanks Vs. Thrifts

Commercial Bank vs. Thrift Institution


Commercial banks are considered to be the largest group of depository institutions when measured by asset size; they are very distinguishable from savings institutions and credit unions in the size, regulation and composition of their loans and deposits. Deposits are the main source of funding for commercial banks while their liabilities may include various non-deposit funds such as subordinated notes and debentures.
Commercial banks have two main assets on their balance sheet; loans and investment securities. Loans are responsible for the majority of assets held by commercial banks and are considered to be the most important revenue generator. The four main types of commercial bank loans are; business loans, real-estate loans, individual loans, and various other loans, which may be loans to emerging countries. Real-estate loans rank as the largest asset of the four main types of loans. Investment securities represent the second m...