THE ROLE OF COMMERCIAL BANKS IN THE FACE OF A DEPRESSED ECONOMY

Section 2 of the Bills of Exchange Act 1882 provides that “In this Act, unless the context otherwise requires ‘bankers’ includes a body of person, weather incorporated or not, who carry on the business of banking”. Business of banking according to Hillsburgh’s law of England, ‘is the receipt of money on current or deposit account and the payment of cheques drawn by and the collection of cheues paid in by a customer. The nature and role of bank in the financial intermediation portray the institution a very vulnerable. The primary sources of banks funds are deposits form other banks, private customers and other corporate organizations. Such deposits usually short termed, are of course; legally repayable in full to the depositors on demand whether or not the bank is successful in investing the money received. This study, examines the roles of commercial banks in the face of a depressed economy in order to bring revival and development. To accomplish these objectives stated above, the study will analyze the financial roles economic roles and the impact they will have on a depressed economy. A good number of commercial banks will be studies with major focus on first bank of Nigeria PLC to see how much role commercial banks has played in our economy. Finally, based on the result of the survey and studies carried out, recommendations aimed at efficient discharge of commercial banks role were made.