CHAPTER ONE

INTRODUCTION:

        When an economy is said to be depressed, it simply means that all the reasonable percentage of such economic activities are less active.  Poor standard of living becomes order of the day of such economy because it is characterized by low per capita income.

        In a depressed economy, anti-social activities are increased as a result of unemployment and lack of financial support to those that want to go school.  Also in such economy, agricultural sector will not be financed and for that reason there would be poor agricultural yield.  Government find it difficult to provide social infrastructures for individual and deficit budgeting becomes every year experience.

        In an economy like that commercial banks role cannot be over stated.  The commercial banks are expected to play a role in such economy to enhance its economic activities by loaning to individuals so as to encourage them to invest, so that through their investments they will have an income to save and do other things to help life.

 BACKGROUND OF THE STUDY:

        Looking at the increase in low standard of living as a result of less active of economical activities of the country, I can say that commercial banks have a need to be an instrument to help for advancement of such economy.  So to wipe off the economical depression; the commercial bank has a lot of contribute as the quest for economic development of such economy needed.