Commercial and Merchant Banking:

The commercial and merchant banks are profit - making enterprises, as well as the major financial intermediaries through which the monetary authorities facilitate effective distribution of money in the economy.

The commercial banks offer a range of services which include the following:

Accepting deposits of money:

Commercial banks, as savings institutions, provide facilities for the mobilization of savings by accepting deposits form households, firms and government. They use current account, saving account and fixed deposit account to accept demand deposits, saving deposits and time deposits respectively.