Role of commercial banks in development

Background of the study Government Expenditure no doubt is an important instrument for a government to control the economy of a nation. Such as — Banks motivate the people for savings through various programs and collect the dispersed savings of the people.

The monetary authorities had to be carried into the management of some banks when things get out of hand until the crisis is over. It ensures fuller utilization of resources. Further, bank invests it in rural economy.

Today international trade, without involving banks, is so difficult. In India they provide short-term loans. A commercial bank is something with which every one of us is well known.

The study is limited to the period of which saw the significant role played by the financial sector in the Nigerian economy. Functions of a Commercial Bank 1 Primary Functions of Commercial banks Accepting Deposits — It offers a variety of deposit schemes to its customers like: Our people are not oriented to savings and investment.

A developing economy requires a higher rate of savings and capital formation. Among the factors that leads to the inefficiency in the banking industry are: Deficit spender unit obtain medium and short term loans and overdraft from commercial banks to start a new industry or to engage in other development efforts.

There is acute shortage of capital. Such training and income generating projects can make our youths self reliant, lessen the intricate problem of unemployment and improve the standard of living in our rural areas.

Banks remove the deficiency of capital by providing different types of funds that leads to economic development. Promoting Growth with Stability: The laying down of priorities in the spheres of development is one of the distinguishing characters of development planning.

Instant Share On Social Media: Banks formed with an objective of developing the rural economy by providing credit and deposit facilities for agriculture and other productive activities in rural areas.

What Is the Role of Commercial Banks?

Indeed history provides us with some starting information regarding how banks provided finance for imperialist ventures in newly acquired colonies.The aims and objectives of this research work is to investigate into the role-played by the commercial banks, which cannot be over emphasized in the economic development of Nigeria.

Present a detailed and clear picture of the role played by commercial bank in the economic development of Nigeria. Commercial banks have played a critical role in the economic development of a country.

Role of Commercial Banks in Economic Development

Now a day’s commercial banks are important not just from the point of view. THE ROLE OF COMMERCIAL BANKS IN ECONOMIC DEVELOPMENT OF NIGERIA. CHAPTER ONE. INTRODUCTION. Background to the Study. The Nigerian banking industry is majorly composed of Deposit money banks, development banks and the Central Bank of.

Commercial Banks and the Big Picture The process of launching a commercial bank foreshadows the overall role that these banks play in the economy. A commercial bank is basically a collection of.

Development Banks: Their role and importance for development C.P. Chandrasekhar Among the institutions whose role in the development of the less developed regions is well recognised but inadequately emphasised are the development banks.

Playing multiple roles, Commercial banks, which mobilise finance through savings and time deposits. Dec 16,  · The primary role of commercial banks in the developed world is to offer business bank accounts with standard options, such as deposits, withdrawals and loans. A secondary role of commercial banks is supporting the development of the local economy.

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Role of commercial banks in development
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