Explain any five roles played by commercial banks to the business community.

      

Explain any five roles played by commercial banks to the business community.

  

Answers


gideon
i. They accept deposits/saving facilities to businessmen e.g. savings/current/fixed deposit
accounts.
ii. They give loans/credit facilities to the business community in form of overdraft/secured loans.
iii. Commercial banks offer safety locker facilities/safekeeping of valuables (at some fee) to
businesses e.g. title
deeds/share certificates/log books/wills/jewels etc.
iv. The offer means of payment/money transfer facilities like standing orders/credit
transfers/travelers cheques/credit
cards/debit cards/cheques/letters of credit/electronic fund transfer/mobile money transfer.
v. Provide foreign exchange services to businessmen through (either) buying or selling foreign
currencies (according
to need)
vi. They give advice/advisory services to businessmen/firms about (viable) investments (sound)
financial
management.
vii. They provide trusteeship/act as trustees by undertaking to manage property/estates left
behind by deceased clients
(hence improving/expanding/continuing/supporting business operations.
viii. They act as referees/guarantors to clients who would wish to acquire/secure loans/buy goods
on
credit from elsewhere/financial institutions hence supporting business operations.
ix) They acts as intermediaries between savers and borrowers by accepting deposits from those
who
have excess money and lending to investors (hence supporting business activities)
x) The provide night safe keeping facilities for late bankers hence ensuring extended business
hours (for maximum /optimal profits)
xi) Commercial banks acts as issuing houses thereby facilitating selling of new shares by various
firms/companies.
xii) They undertake collection/receiving of money from debtors on behalf of their clients (thereby
promoting investments habits/business activities)
gideon1 answered the question on September 28, 2017 at 05:25


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