Commercial Banks can’t be eradicated

It’s true that we all go through different stress from commercial banks. I know how commercial banks can be so stressful because I’ve also be in that situations before. Commercial banks has a lot of usefulness regardless their network issues, problems with Automated teller machine (ATM), Different fees or let’s say high fees, etc.

Commercial banks has traditionally been the backbone of banking. Banking was created to conduit idle resources in households to productive purposes in business. Banking in old times was not tightly monitored and tightly regulated business that it is today. Instead, earlier banking was completely free market operation. And sole proprietor can enter and exit the banking business without any restrictions or licenses.

Banking had its origin with the goldsmith in London in the seventeenth century (Based on research). The goldsmiths store valuables items and accept money has deposits from the merchants for safe keeping of valuables. The first banking function was acceptance of deposits of cash from the business men who had no safe place to keep their money. The second stage came up when the goldsmiths start issuing receipts whenever deposits is made by the merchants. Since then baking activities keep developing from stages until recent times, when banks have introduced more complex systems of banking into the industry.

Commercial banks help the household, firms and governments by accepting deposits and other valuables for safe keeping. Although they are owned by either private individuals or governments. They also lend money from individuals money with little or high internet based on type of account the individual or firm open.

Reasons why commercial banks activities can’t be eradicated

Acceptance of deposits

This is their major usefulness that the public knows. As they take good care of people’s money or properties.

Agents of payments

Commercial banks act as agent of payment on behalf of their customers. ( that they act as third party between their customers and their customers agent).

They issued bank statements

Ar regular intervals, the banks will prepare and send their statements to their customers to show their transactions, and also the customer will prepare bank reconciliations statements to harmonize and reconcile his/her balances.

They issued travelers Cheque

This is one of the important usefulness of the commercial banks. They issued travelers Cheque to those traveling overseas in order to facilitate their commercial activities.

Foreign transactions

Commercial banks makes foreign currencies available to their customers. without the commercial banks activities some citizens who haven’t left his/her country for another won’t even know the signs/symbol on the note of other countries currencies expect the help of Goggle. They participated in foreign exchange market and help in solving problems relating to foreign currencies.

Commercial banks has alots of advantages that no other banks has although they not the apex banks in a country but has close contacts with the public and the central bank pump or reduced money in circulation through them.

With the current situations in Nigeria there’s high money in circulation and it’s leads to inflation ant at the same time inflation leads to devaluation of currency (Naira). There a lot of shops with point is sales machine (POS) where by people can withdraw money anywhere if there no issues with network of the person’s bank.
because it seem network problem is the major Nigerian bank problems.

Many writer have written in many ways how BCH should generate and control the world of commercial banks but I think still has some advantages which will make them exist when BCH takes control of the world. ( PLS NOTE: I’m not opposing any of the two) maybe I’ll write about BCH and banks in few days to come. With my little understanding about BCH I think I’m good to write about it.

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