A commercial bank is an institution that accepts deposits from the public and creates credit. Commercial banks offer various banking services such as accepting deposits, lending money to businesses and consumers, trading in foreign exchange markets, providing advice on investments, issuing mortgages for property purchases, and offering other types of loans.
In Nigeria there are many commercial banks with different functions. This blog post will discuss the main functions of Nigerian commercial banks.
A commercial bank is a financial institution which provides a range of financial products or services to both corporations and individuals for saving/investing or borrowing purposes.
The word “commercial” means that the organization deals with either goods or services including banking activities like taking deposits from customers in order to lend it out (i.e., make profitable investments.
The following are the functions of commercial banks:
To provide loans
Commercial banks in Nigeria are an important part of the economy because they provide loans to people who want or need money. Some other functions that commercial banks have is offering a variety of services, supporting national development projects and international trade, as well as managing public debt.
Commercial Banks play many different roles that benefit society such as lending out funds for those seeking additional sources of income which helps make their lives more stable.
As opposed to investing in risky ventures with high-returns but about equal risks like gambling where one could lose all his winnings at any time so it’s clear why this would not be encouraged by Nigerian Commercial Bankers!
Accept deposits and money transfers from customers
A commercial bank’s main purpose is to help manage money, and they often do so by accepting deposits from customers.
Commercial banks are important because their primary function is helping people with managing their finances – like when someone wants to send or receive some cash.
Trade securities or commodities on behalf of clients
Bankers in Nigeria can be your one stop shop for all of your trading needs. From commodities to stocks, gold and even currency exchange – they’re the experts at getting you what you need without any hassle or confusion!
Commercial banks are a great way to get anything from currencies to oil exchange with no hassles involved. They have some of the most experienced traders on their staff who know just about everything there is out there when it comes down to finance and understanding markets around the globe- so if you won’t settle for less than perfect service then don’t look anywhere else but them.
Manage the assets and liabilities
Banks can be a great help when it comes to managing assets and liabilities. For instance, if you want to buy something that’s really expensive but don’t have the cash right now, your bank might offer an installment plan so they get their money over time in small increments instead of all at once.
Banks are known for facilitating large transactions like buying property or starting a business by lending people (or organizations) funds with which these things could happen without them having large amounts on hand from day one!
They also offer financial advice to their customers. In addition, they provide cash management services for business owners through a series of products that include checking accounts, money market accounts, certificates of deposit (CDs), treasury bills (T-bills) and bonds.
All these services increase the potential for economic growth by providing entrepreneurs with funds necessary to invest in new businesses or expand existing ones.
Commercial banks in Nigeria are the main source of funding to businesses and individuals
In Nigeria, banks are the main source of funding for both businesses and individuals. In particular, commercial banks in this country make up 95% of all banking activity there as they provide loans to a wide variety of different industries including agriculture enterprises.
The economy is booming in Nigeria due largely to how easily it can be funded by local bank institutions which receive deposits from individual Nigerian citizens who may have left their money under lock-and key at home or work. These people want quick access without having to travel abroad so that’s why many simply deposit funds with financial institutions like First Bank Limited.
- John Aina Ajibola has a Masters degree as an engineer and has over 3 years of teaching and research experience. He is happiest when on a bike and is also interested in electric energy and computer Science.