commercial banks are depository institutions

commercial banks are largest and most important depository institutions. The roughly 12,000 commercial banks in the United States have largest and most diverse collection of assets of all depository institutions. Their main source of funds is demand deposits (i.e., checking account deposits) and various types of savings deposits (including time deposits and certificates of deposit).The major use of funds by commercial banks is making loans. In 1992, loans made up 61.5 percent of commercial banks assets; of these,24.6 percent were real estate loans and 36.8 percent were other loans such as loans to businesses and automobile loans. the remaining 38.5 percent of commercial banks' asset include securities (primarily federal government bonds), vault cash, and deposits at Federal Reserve Banks.