This chapter provided an overview of the major activities of commercial banks and recent trends in the banking industry. Commercial banks rely heavily on deposits to fund their activities, although borrowed funds are becoming increasingly important for the largest institutions. Historically, commercial banks have concentrated on commercial or business lending and on investing in securities. Differences between the asset and liability portfolios of commercial banks and other financial institutions, however, are being eroded due to competitive forces, consolidation, regulation, and changing financial and business technology. Indeed, in the 2000s, the largest group of assets in commercial bank portfolios were mortgage related. The chapter examined the relatively large decline in the number of commercial banks in the last decade and reviewed reasons for the recent wave of bank mergers. Finally, the chapter provided an overview of this industry's performance over the last decade and discussed several global issues in commercial banking.