Lesson Notes By Weeks and Term - Junior Secondary School 2






  • Business Studies for JSS Bk 2 By O.A. Lawal et’al Publisher: Longman
  • WABP Business Studies for JSS Bk 2 By Egba T. Ehiametalor etal Publisher WABP
  • Business Studies Work Book for JSS Basic 8 By S. Okioyemi   
  • Macmillan JSS 2 Business Studies By Awoyokun A.A et’al.





  • Definition (Commercial bank).
  • Banking Services
  • Ethical issues in banking.



A bank is a financial institution meant for safe keeping of money, valuables and lending of money to customers.

A broader definition of a bank is any financial institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers. This broader definition includes many other financial institutions that are not usually thought of as banks but which nevertheless provide one or more of these broadly defined banking services. These institutions include finance companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, and real estate investment trusts.



This is a financial institution which engage in safe keeping of money, valuables, granting of credit facilities to her customers and also carryout commercial activities on behalf of her customers. E.g – Zenith bank, oceanic bank, UBA, GTbank, etc. 

Commercial banks are so named because they specialize in loans to commercial and industrial businesses. Commercial banks are owned by private investors, called stockholders, or by companies called bank holding companies. The vast majority of commercial banks are owned by bank holding companies. (A holding company is a corporation that exists only to hold shares in another company.) 



  1. Define bank.
  2. List the types of banks you know.



  1. Current Account: A commercial bank keeps a current account on behalf of its customers. Cash can be withdrawn frequently. The owners of a current account make demand by issuing a cheque.
  2. Accepting deposit : The bank accepts deposits into the account of the customers. Deposits can also be in form of certificates, jewelries, wills and other valuables.
  3. Withdrawal of money: Money can be withdrawn from the commercial bank on demand by the authorized signatory to the account.
  4. Fixed deposit account: This is a special form of account where money not immediately needed is kept for a specified period of time.
  5. Saving account: Small income earners tend to use savings account. Money kept attracts smaller interest rate compared to a fixed deposit account.


Other services of commercial banks:

  1. Overdrafts and loans: An overdraft is an informal way of getting loan from the bank. The difference between overdrafts and loan is that interest is not paid on overdraft within a period of time.
  2. Issuance of traveller’s cheque: A commercial bank issues traveller’s cheque which is acceptable internationally as an exchange for cash.
  3. Foreign exchange: The bank helps individuals or businesses to process the foreign exchange forms. It also helps in the transfer of money.
  4. Safeguarding of valuables: It provides a service to individuals to keep valuables.
  5. Trustees/Registrar: Act as trustee in the administration of a person’s estate on their behalf even when they are dead or alive.



The following are some of the ethics that can guide the banks to do their work well.

  1. Banks should keep all financial matters of individuals confidential.
  2. Bank officials must keep customers’ account accurate.
  3. Officials of bank must avoid stealing from the bank.
  4. Bank clerks must not steal from customers.
  5. Banks must follow government regulations.
  6. Banks should not give false report to the government.
  7. There should be no cover up of customers’ financial crime.
  8. All documents relating to criminal activities must be made available to the appropriate government agencies when demanded.


Mention three bank services to individuals and businesses.



WABP Business Studies bk 2 by Egbe Ehiametalor et’al pg 59-61.



  1. One of these is not one of the services of a commercial bank (a) passive account (b) current account (c) fixed deposit account (d) accepting deposit.
  2. Current account uses ------ on withdrawal of money.(a) pass book (b) cheque book (c) payslip (d) pay roll.
  3. How many types of consumer loans do we have? (a) 3 (b) 5 (c) 2 (d) 4
  4. ___________is not a function of a bank (a) safe keeping of money. (b) Granting of loan to customers (c) safe keeping of valuables. (d) granting of visa.
  5. The following are types of deposit except (a) demand (b) hybrid (c) time (d) medium



Mention three banking services.

Mention three ethical issues in banking.



  1. Mention types of bank we have.
  2. How many consonants do we have in shorthand?
  3. How many vowels do we have in shorthand?
  4. Mention four functions of a bank.
  5. Mention three qualities of a receptionist.

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