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Keep shoppingCommercial Banking Explained: Deposits, Lending & Risk
33 students
Commercial Banking Explained: Deposits, Lending & Risk
Commercial banking: deposits, lending, liquidity, risks & how banks shape markets and the economy
Created byEric Kang
Last updated 6/2026
English
English
What you'll learn
- Understand how commercial banks operate within the financial system and how they interact with financial markets and the broader economy.
- Develop a clear understanding of how banks raise funds through deposits, borrowing, and capital market financing.
- Explain key banking concepts including liquidity management, deposit structures, and major banking risks such as credit, interest rate, and liquidity risk.
- Apply banking knowledge to interpret real-world financial developments and understand how banks influence economic activity and financial stability.
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Course content
2 sections • 5 lectures • 1h 34m total length
Requirements
- No prior finance or banking knowledge is required; this course is designed for beginners.
- Basic familiarity with general learning or academic content is helpful but not necessary.
- A computer with internet access to follow lectures and examples.
Description
This module forms part of the full course “Global Financial Markets 2026: The Definitive Guide.” It is designed to provide learners with a clear, structured, and practical understanding of commercial banking and its role within the global financial system. Within the broader masterclass, this module connects banking operations to financial markets, monetary flows, and macroeconomic stability.
Commercial banks are at the core of modern economies, acting as intermediaries between savers, borrowers, and financial markets. In this module, you will learn how banks generate funding through multiple sources, including customer deposits, interbank borrowing, and capital market instruments such as bonds.
We examine the structure of bank deposits in detail, including transaction accounts, savings accounts, certificates of deposit, and money market accounts, and explain how each contributes to liquidity and profitability.
You will also explore how banks manage liquidity and funding pressures in real-world conditions. This includes borrowing from central banks, using repurchase agreements, and maintaining balance sheet stability during periods of financial stress.
A significant part of the module focuses on risk management in commercial banking. You will study key risks including credit risk, liquidity risk, interest rate risk, market risk, and foreign exchange risk, along with how these risks influence lending decisions and capital allocation.
Finally, we connect these concepts to overall bank performance, showing how economic growth, interest rate environments, regulatory frameworks, and management strategy shape profitability and stability.
By the end of this module, you will understand how commercial banks operate internally and how they influence financial markets and broader economic activity.
Students are encouraged to continue with Financial Markets 2026: The Complete Masterclass, where these concepts are integrated into a unified framework of global finance.
Who this course is for:
- Beginner learners who want to understand how commercial banks work in a clear and structured way.
- Intermediate learners who already have some exposure to finance and want a stronger understanding of banking systems and financial intermediation.
- Advanced learners, students, and professionals who want a system-level understanding of commercial banks and their role in financial markets and the economy.