What is banking? Give the main features of commercial banking.

Banking refers to the services that a bank provides which includes accepting deposits, lending funds, credit creation, etc. in order to earn profit.

A commercial bank refers to a financial institution that accepts deposits from the general public and extends loans for various purposes such as consumption and investment. it is engaged in a two way transaction. On one hand, it accepts deposits from the public and in return, it offers them a rate of interest on their deposits (borrowing rate for bank). On the other hand, it extends loans to the investors in return of which it charges a rate of interest on the amount lend (i.e. lending rate).