In banking terminology, the term Business Banking refers to a bank which offers general bank services like checking and savings accounts to corporations and other businesses. As with retail banking, Business Banking, also sometimes known as Commercial banking, services may include money market accounts and accepting time deposits.
For example, for some time, Business Banking was limited to general banking activities. This included accepting deposits and making loans, in addition to other fee-based services and has generally prevailed in the United States since the 1934 passage of the Glass-Steagall Act that separated commercial banks from investment banks. Investment banks were not allowed to conduct regular banking business, but were instead limited to engaging in investment banking activities in the capital markets. This changed in 1999 with the Financial Services Modernization Act, and since that time, U.S. banks no longer need to be two separate entities for the different activities. Business Banking institutions also generally offer three basic loan types: secured loans, unsecured loans and mortgage loans. Also, these banks can now offer merchant banking and private equity financing.