Functions of Commercial Banks – WASSCE Question

Many people who deal with commercial banks, sometimes wonder what the Functions of Commercial Banks are.


Functions of Commercial Banks
Money: Educareguide


Thus, it is not surprising that many examining bodies administer tests to solicit response from students on this banking concept. Now, Let me give you a brief background before we go to the main text.


Brief Background:

Truly, Commercial Bank’s functions are spelt out in the Law that establishes the bank within a specific jurisdiction.

In addition to that, it is a topic that many people conduct research on, especially students (including those writing WASSCE).

Furthermore, WAEC asks questions on this sub-topic most often in the WASSCE Business Management examination.

As a result, educareguide is here to assist you in to fully understand this topic as well as aid you on how to answer this question in an examination.


The Other Ways Of Asking Question On This Sub-Topic Are:

  • What are the roles that a commercial bank play in the development of a country?
  • State and explain the main functions performed by commercial bank.
  • What activities do commercial banks perform for the their customers?
  • Give the functions performed by Commercial banks perform in the development of an economy. ETC.

Furthermore, the sub-topic is an integral part of the Business Management for Senior High School Students across the West African sub-region.

In detail, these countries include Nigeria, Ghana, Sierra Leone, The Gambia and Liberia. Now let’s look at the Functions of Commercial Banks below.


The following functions are performed by Commercial banks in the development of an economy:


Accepting deposits:

Commercial Banks accept deposits from the general public including savings account, Deposit account and current account.

They therefore provide a safe place for keeping customer’s money.


Granting credit facilities:

These banks grant credit facilities to their customers in the forms of loans and overdrafts.

Commercial banks therefore provide businessmen with money to finance their activities.

Keeping other valuables:

Commercial banks apart from keeping money also keep customers valuables such as wills, certificates, life policies, securities as well as title deeds.

Making payments on behalf of their customers:

They make payments on behalf of their customers upon the written consent of the customers.

Commercial Banks also receive dividends and other monies on behalf of their customers.

Serving as trustees and referees:

Commercial banks serve as trustees and referees for their customers, recommending such customers when necessary to other banks.


They also reduce unemployment by employing people in a place, state or country.


Also, they provide expert advice on investment and business opportunities to their customer



To conclude, It must be realised that commercial banks perform very important role in the development of a country.

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