Commerce SSS2 Third Term

WEEK 5

Banking

Performance Objectives

The Student should be able to:

     1. State the functions of the centre bank of Nigeria, commercial banks, bureau de change and specialized banks.

Content

Origin of the Central Bank Nigeria

The central bank is the monetary authority of a country, government bank and banker’s bank. It issues legal tender, controls the volume of cash reserves with commercial banks. Before independence, the West African Currency Board was the highest financial institution which performed the functions of the central bank. The board controlled the issue of currency in the member countries. After independence, the countries set up their central banks to ensure rapid economic development. The Central Bank of Nigeria was established by the Central Bank Act of 1958 and started operation on July 1st 1959. However, 1892-1952, there was an enquiry by.... View More