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Definition of Mixed banking

Commercial banking and investment banking combined together is referred to as mixed banking. These two types of banking are completely different from each other. Commercial banks are engaged in short-term financing while investment banks are engaged in log-term financing. Commercial banks’ deposits are of short duration and payable on demand or short notice.
So these banks are to keep their assets as liquid as possible. While lending commercial banks are to match their assets and liabilities in terms of liquidity. Any mismatch may lead such banks into great trouble. On the other hand, investment bankers lend for meeting the long term need of the business and industry. That is why these banks are to procure resources of longer duration to avoid liquidity crisis.