Explain retail and wholesale banks in commercial banking, Financial Management

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Explain about the retail and wholesale banks in the commercial banking.

Retail and wholesale banks:

Commercial banking can also be separated within retail and wholesale banking. The dissimilarity between retail and wholesale banking is fundamentally one of size. In the Retail banks have traditionally given intermediation and payment services to individuals and little businesses dealing with many of small value transactions. It is in contrast along with the wholesale banks that deal with a smaller number of larger value transactions.

In practice this is difficult to classify purely retail banks. Into the UK, USA and several other developed countries, huge banks combine retail and wholesale activities. The wholesale banks contain mainly of investment banks.


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