These are financial are financial institutions that accept deposits of money from the general public, safeguard the deposits and make them available to their owners when need arises. Commercial banks operate under the Banking Act 1968
Functions of Commercial Banks
1. Accepting deposits for safe keeping and for interest
2. Collecting money on behalf of customers and credit this money in customers accounts
3. Transferring of money from individual to another person's accounts through credit transfer.
4. Supply of foreign currency are obtainable at commercial banks
5. Lending money, banks lend loans to customers from which they earn interest
6. Facilitate international trade by issuing letter of credit and undertake foreign exchange transactions on behalf of their customers
7. Act as trustees and executives of wills if one wants to make a will he/she writes and appoints a commercial bank as the trustee and executor of the will
8. Provision of safer keeping of valuables like title deeds, gold certificates etc
9. Making decision affecting development. Before advancing loans to prospective customer, commercial banks are very careful and strict so as to give loans to investment in viable sector of the economy
Wilfykil answered the question on March 8, 2019 at 12:21
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