Functions of commercial banks

1. They accept deposits and safe guard them on the behalf of their customers. This is done by opening up an account with the bank.
2. They give loans and overdrafts to their customers.    The loans may be short term, medium   term or long term.
3. They exchange currencies for their customers.    This aids international   trade.
4. They keep valuable articles and documents in safe custody on the behalf  of their clients   e.g. wills, land tittles etc.
5. They facilitate easy and quick payments of debts on the behalf of their customers  through   the use of cheques or standing orders.

Note. A standing order is a document   from the customer authorizing   the bank to make regular payments        on his behalf   to his creditors   for example   rent,   Insurance    expenses,    water   bills, electricity   bills etc.

6. They look after the property of the deceased customers and distribute   their assets as laid down in the will.
7. They give financial advice and offer technical services to customers   on business   and money.
8. They create deposit money (secondary   deposits)   through the process of credit creation.
9. They   participate    in the implementation   of government policies for example    the   monetary policy.

10.  They facilitate the transfer of money from one place to another by use of travelers’   cheques