What are commercial banks?

A commercial bank is like a superhero who helps people and businesses save money and borrow money when they need it.

Imagine you have a piggy bank at home, that's your personal way of saving money. A commercial bank is like a giant piggy bank for grown-ups and companies, but even bigger and smarter. It takes your extra coins (or dollars) and stores them safely. Then, if someone needs money to buy a toy, start a lemonade stand, or build a house, the bank gives it to them, kind of like lending you some coins from its giant piggy bank.

Commercial banks also help people move money around easily. If you want to send money to your friend across town, the bank can make that happen, just like how a mail truck helps letters get from one house to another.

Sometimes, they even play games with money, like when you put in $10 and get back $10.50 after a while because of something called interest. It's like getting a little extra candy for saving your coins!