IMPORTANCE OF BANKS TO THE DEVELOPMENT OF A COUNTRY

1. Giving loan in a form of overdraft :
Customers are allowed to withdraw more than
what they have in their account to do
something after seeing their bankers.
2. Bank make payment on behalf of their
customers :
Banks make payment using cheque on behalf of
their customers to a third party.
3. Engage in domestic and foreign
transactions : Commercial banks help their
customers get foreign exchange from the
central bank to do their business.
4. Giving loans to their customers : Another
important contribution of the bank is lending,
or given loans to their customers. They also
give loans to the government, companies and
individuals to undertake economic and social
activities.
5. Acceptance of deposits and premiums :
Commercial banks provide safe places for
people to deposit their money by opening
account with the bank.
6. They offer safe custody facilities for
their customers.
7. They also provide revenue for the
government.
8. Banks also give technical advice to their
customers.
9. The banks provide employment for the
people in the country.
10. Banks provide some social services for
the communities in which they operate.

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