Commercial Banks

Functions of Commercial Banks

 Introduction
 Control largest amount of money
Accept deposits
Business loans
Deposit accounts
.- Savings
-Checking
-Time deposit
Owned by a group of individuals
 The difference between Primary &
Secondary functions of CB
Primary functions Secondary functions
1. These are the main 1. Secondary activities of the
activities of the bank bank
2. They are the main sources 2. They are not the main
of income of the bank sources of the income of
3. These are the obligatory the banks
on the part of the bank to 3. Not obligatory on the part
perform of the bank to perform, but
all CBs perform these
activities
 The role of CBs in the economic
development of a country

• Plays an important and active role in in the economic

development of any country

• If the banking system is effective, efficient and

disciplined it brings about rapid growth in the

various sectors of the economy.

 The significance of CBs in the
economic development

• Promote capital formation

• Investment in new enterprises
• Promotion of trade and industry
• Development of agriculture
• Balanced development of different regions
• Influencing economy activity
• Implementation of monetary policy
• Monetization of the economy
• Export promotion cells
 Conclusion

• Let’s support CBs because they are the pillarz of

each country’s economy
• The governments should step in to assisting
formulating policies which will benefit both clients
and the banks
• Interest rates should be affordable
Thank you for your attention!
 References
Internet Sources

1. Commercial Banks, 2011: Functions of Commercial banks, [on-line], [cit.

8. 3. 2012]. Available from: http://www.nios.ac.in/srsec319/319-33.pdf
2. Commercial Banks, 2010: Tradeoff Opportunity Cost, [online], [cit. 8. 3.
2012]. Available from:
http://www.authorstream.com/Presentation/aSGuest29975-263777-
commercial-banks-entertainment-ppt-powerpoint/
3. The World Bank, 2009: Role of Commercial banks in the economic
development of a country, [on-line], [cit. 8. 3. 2012]. Available from:
http://www.slideshare.net/Mustafaseady/role-of-commercial-banks-in-the-
economic-development-of-a-country