Functions of Commercial Banks - JSS3 Social studies Lesson Note

Deposits and Withdrawals: Commercial banks accept deposits from individuals and businesses and allow withdrawals, providing a safe place for people to store and access their money.

 

Loans and Credit: They extend loans to individuals and businesses, promoting economic activities by financing projects, investments, and day-to-day operations.

 

Payment Services: Commercial banks offer various payment services, including checks, electronic funds transfer, and credit/debit card transactions, facilitating smooth financial transactions.

 

Foreign Exchange Services: Many commercial banks engage in foreign exchange activities, allowing clients to buy, sell, and transfer foreign currencies.

 

Investment Banking: Some commercial banks provide investment banking services, helping clients with mergers, acquisitions, and capital market activities.