Commercial Banks
Commercial banks or joint-stock banks are really companies which exist to make profits by borrowing money from depositors and re-lending it at a higher rate of interest to other persons. Examples of commercial banks include Stanbic bank, Kenya Commercial Bank (KCB), Standard Chartered bank, and Barclays bank.
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`Recognised Banks and financial institutions in Uganda |
Commercial banks are so named because they specialize in
loans to commercial and industrial businesses. Commercial banks are owned by
private investors, called stockholders, or by companies called bank holding
companies. The vast majority of commercial banks are owned by bank holding
companies. (A holding
company is a corporation that exists only to hold shares
in another company.)