CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The role of commercial bank in the development of the national economy is quiet important as commercial banks constitute the intermediary between the apex bank and the general public. Commercial banks provides the needed channel for savings, mobilize deposits from the surplus unit of the economic sector and provide the needed funds for investment and development in different sector of the Nigerian economy. Commercial bank also provides advisory services to prospective investors regarding the prospect and viability of the intended project.
The commercial bank is financial institutions which accept deposit inform of savings and current account, provide safekeeping and serve as channel for easy retrieval when needed. Commercial banks are greatly required in the country for the development of the nation. Hence they serve as means for obtaining loanable funds for developmental projects in other to achieve macroeconomic stability in the nation. They also facilitate international trade through the provision of foreign exchange and extend credit to importers. Commercial act as agent to other institutions in the collection of revenue, thereby providing funds for economic development.
Commercial banks are the pillar of accessing loans as they facility the grant of short-term, medium and longterm loans in the economy. Commercial banks facilitate easy payment through the provision of cheques and other financial instrument, they enhance international travels through the provision of travellers cheques, and they create money for the central bank and provide means for the transfer of funds which promotes economic activities. Commercial banks provide backup liquidity to the economy. They interprete monetary policy and provide some “value added” from transferring funds from savers to borrowers and providing liquidity. The research therefore seek to appraise The role of commercial banks in the economic development of Nigeria (A case study of Etsako west local government area of Edo state).