A commercial bank's primary liabilities are deposits and primary assets are loans and bonds. As per the U.S. Banking Act of 1971, the "commercial bank" is an institution that offers demand deposits and originates loans. Therefore, a money market mutual fund is not a commercial bank as it does not originate loans. Similarly a finance company is also not a commercial bank as it does not offer demandable deposits. The term "commercial" distinguishes a commercial bank from an investment bank.

Its primary liabilities are deposits and primary assets are loans and bonds. As per the U.S. Banking Act of 1971, the "commercial bank" is an institution that offers demand deposits and originates loans.