BACKGROUND OF STUDY
Commercial banks are in the services industry, in safe keeping of money and valuables, remitting foreign and domestic exchanges, collecting cheques, draft, notes and other obligations and behalf of other customer. According to Christian Ammer, Deans Ammer in their books dictionary of business and economics, defined commercial bank as “bank whose principal functions are to accept demand deposit and to make short medium and long term loans chiefly to business firms.
going into the origin of credit disbursement by commercial bank in
origin of credit creation by commercial bank can be traced back to surplus and
deficit sector in
Credit disbursement by commercial bank is through creation, credit creation involves a situation where all commercial banks are expected to lend out some percentage of their daily deposit after returning their legal reserve requirement as prescribed by law. The proportion so lent out would go into a new bank which will in turn region the legal reserved and give out the rest as loans to customers who will utilized the money in away that is ultimate collector process it into other bank which takes it turn recirculation to sum collected.
The commercial banks have over the years proved be the most important financial intermediary. They have facilities for the rapid transformation of an economy for an away. They are the largest single group in financial sector. Out weighing by share volume of transaction all the non-bank financial institution put together.
Anonymous, U (2020). The Appraising of Lending Policies of Commercial Banks to the Private Sector. Afribary.com: Retrieved November 28, 2020, from https://afribary.com/works/the-appraising-of-lending-policies-of-commercial-banks-to-the-private-sector
User, Anonymous. "The Appraising of Lending Policies of Commercial Banks to the Private Sector" Afribary.com. Afribary.com, 08 Sep. 2020, https://afribary.com/works/the-appraising-of-lending-policies-of-commercial-banks-to-the-private-sector . Accessed 28 Nov. 2020.
User, Anonymous. "The Appraising of Lending Policies of Commercial Banks to the Private Sector". Afribary.com, Afribary.com, 08 Sep. 2020. Web. 28 Nov. 2020. < https://afribary.com/works/the-appraising-of-lending-policies-of-commercial-banks-to-the-private-sector >.
User, Anonymous. "The Appraising of Lending Policies of Commercial Banks to the Private Sector" Afribary.com (2020). Accessed November 28, 2020. https://afribary.com/works/the-appraising-of-lending-policies-of-commercial-banks-to-the-private-sector