Banks are part of the infrastructure of the country within which development takes place. The certainly help the shift from subsistence economy to a cash crop economy, by encouraging both the use of money and confidence in it. They provide a convenient means of making payment between people easily but the use of cheque and also provide safe place for the deposit of money. Furthermore, they help in development by their ability to provide loan.
The first commercial banks in West African were the expatriate bank. These were overseas branches of banks whose head offices were in places like London, New York and Bombay. This had advantages in that the banks were strong as they could obtain funds from their head offices if there is need to do so. On the other hand it had no influence on the development of the country because these banks were controlled from abroad. There was likelihood that surplus funds would not be used to foster local development. This led to the encouragement of indigenous banks by West African governments and imposition of expatriate banks where they were not indigenized.
Commercial banks play an important role in the economic growth and development of Nigerian. It involves itself with the investment in various sectors of the Nigerian economy. The banks collect saving from the people and mobilize saving from investment in industrial project.
Commercial banks are involved in the process of increasing the wealth of the Nigerian economy, particularly the capital goods needed for rising productively. Nigerian need the services of the commercial banks to enable the economy attain economic growth and development.
Schumpeter in 1934 observed that the commercial banks were one of the whole processes of development because they do not only facilitate economic growth and development of Nigerian but also speed up the process of economic development in Nigerian.
Commercial banks encourage savings both in the urban and rural areas; since banks accelerate economic development in Nigeria.
Commercial banks encourage investment _ the banks provide loans to both private investor and even government for investment purposes.
Commercial banks help to development the money and capital market the banks buy and sell stocks and shares on behalf of their customers.
Commercial banks enhance the development of international trade- this they do by acting as referees to importers, providing travelers’ cheques to those enrooted overseas, opening letters of credit and providing credit for exports. Commercial banks provide capital needed for development.
• They encourage trading activities by making use of cheque.
• They render financial advice to their customers.
• They provide managerial advice to small scale industrialists who do not engage the services of specialists.
• Commercial banks create deposit money by making advances to customers.
The first commercial banks in West African were the expatriate bank. These were overseas branches of banks whose head offices were in places like London, New York and Bombay. This had advantages in that the banks were strong as they could obtain funds from their head offices if there is need to do so. On the other hand it had no influence on the development of the country because these banks were controlled from abroad. There was likelihood that surplus funds would not be used to foster local development. This led to the encouragement of indigenous banks by West African governments and imposition of expatriate banks where they were not indigenized.
Commercial banks play an important role in the economic growth and development of Nigerian. It involves itself with the investment in various sectors of the Nigerian economy. The banks collect saving from the people and mobilize saving from investment in industrial project.
Commercial banks are involved in the process of increasing the wealth of the Nigerian economy, particularly the capital goods needed for rising productively. Nigerian need the services of the commercial banks to enable the economy attain economic growth and development.
Schumpeter in 1934 observed that the commercial banks were one of the whole processes of development because they do not only facilitate economic growth and development of Nigerian but also speed up the process of economic development in Nigerian.
Commercial banks encourage savings both in the urban and rural areas; since banks accelerate economic development in Nigeria.
Commercial banks encourage investment _ the banks provide loans to both private investor and even government for investment purposes.
Commercial banks help to development the money and capital market the banks buy and sell stocks and shares on behalf of their customers.
Commercial banks enhance the development of international trade- this they do by acting as referees to importers, providing travelers’ cheques to those enrooted overseas, opening letters of credit and providing credit for exports. Commercial banks provide capital needed for development.
• They encourage trading activities by making use of cheque.
• They render financial advice to their customers.
• They provide managerial advice to small scale industrialists who do not engage the services of specialists.
• Commercial banks create deposit money by making advances to customers.
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