Learning Goal: I’m working on a finance discussion question and need an explanation and answer to help me learn.
The primary function of commercial banks is to be an intermediary between savers and borrowers. There have been discussions for a long time over whether commercial banks should be able to expand beyond this narrow charter. The advantage is creating a one-stop shop where you can get a variety of services.
What is the primary role of commercial banks? Should banks be allowed to engage in services beyond banking (insurance, for instance)?
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