Commercial banks and non- financial institutions may contribute to economic growth and development from the standpoint of their functions which include:
- Provision of safe deposits for money and other valuables
- Credit creation based on mobilization of savings
- Facilitation of the central bank’s/ government policy initiatives
- Provision of management advisory services
- Employment
- Facilitation of domestic and international trade transactions (e.g. foreign exchange transactions)
- Insurance services to customers e.g. the Standard Chartered Bank (Kenya)
- Issue of local travelers‟ cheques which guards against loss and theft for if the cheques are lost or stolen, the lost or stolen numbers can be cancelled, which cannot be done with cash; it’s also safe where large sums of money is involved.
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