The difference between a commercial bank and a finance company is that a commercial is_____ , while a finance company is_____ ; and a bank lends on basis, while a finance company lends on_____ basis.

Question

Quizplus · Accepted Answer

Commercial banks are regulated institutions that can lend on both secured and unsecured bases, depending on the product and customer. Finance companies, while also subject to regulation, are largely unregulated compared to banks and typically focus on secured lending, often to individuals or businesses with less access to traditional banking services.

The Difference Between a Commercial Bank and a Finance Company