Commercial Banks - Banking Institutions
These are financial institutions such accept deposits of money from the universal public, safeguard the deposits and create them available to their owners when necessitate arises.
Establishment
Established beneath the Banking Act , 1968.
Functions of Commercial Banks
1. Accepting deposits
2. Gathering money on behalf of customers and credit this money in customers' accounts
3. Transferring of money from individual accounts to the other person's accounts during credit transfer.
4. Supply currency - foreign currency obtainable on commercial bank.
5. Lending money, the banks lend loans to customers from that they earn interest.
6. Facilitate International Trade - issue letters of credit and undertake foreign replace transactions on behalf of their customers.
7. Act like executives and trustees of wills whether one wants to make a will he or she writes single and appoints a commercial bank like the executor and trustee of the bill.
8. Provision of safer maintains of valuables like title deeds, certificates and gold.
9. Creation decision affecting development. Before advancing loan to a prospective customer, commercial banks are extremely careful and strict hence like to provide loans to invest in viable sector of the economy.
10. Provision of saves for maintains money and other valuables over night.