Functions of Commercial Banks – WASSCE Question

Functions of Commercial Banks
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Functions of Commercial Banks is a question that WAEC normally ask in its business management examination. Let me give you a brief background before we go to the main text.


Brief Background:

Commercial Bank’s functions are spelled out in the Law that establishes the bank within a specific jurisdiction. In addition to that, it is a topic researched by many people, especially students (including those writing WASSCE).

Furthermore, WAEC has asked questions on this sub-topic many times 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 that questions could be asked 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 in the development of Ghana’s 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:

  • 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.

  • 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.

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

  • 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.

  • 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.

  • Also, they provide export 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. There are more education guide that educareguide has made available for your learning needs. Please endeavour to bookmark our site so that you can always log on to the site from anywhere. Thanks.

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