Bank services

WEEK: 4

TOPIC: Banking services (cont.)

CLASS: JSS2

GENDER: MIXED

AVERAGE AGE: 12 YEARS 

DURATION: 2 PERIODS (40min. for each period)

REFERENCE: WABP junior secondary business studies book 2 and 

Classic business studies book 2

BEHAVIOURAL OBJECTIVES: By the end of the lesson, students should be able to:

1. Mention the factors to be considered before granting loans.
2. Highlight other types of banks and state their uses.
3. State the ethical issues involved in banking.

PREVIOUS KNOWLEDGE: the students were taken to a bank in the last session and they were taught some of the activities that goes on in the bank.

Biblical Objective:
To manage financial resources wisely and responsibly in ways that honor God and serve others.

Biblical Truth:
God calls His people to faithful stewardship, integrity, and diligence in handling money and financial services.

Bible Verse:
“Whoever can be trusted with very little can also be trusted with much.” — Luke 16:10 (NIV)

LESSON CONTENT

STEP 1: FACTORS FOR CONSIDERATION BEFORE GRANTING LOAN

1. Purpose of the loan.

2. Ability to pay back the loan

3. Credibility of the customer

4. Source of income to repay the loan

5. Financial position of customer’s account.

6. Total amount applied for as loan.

7. Provision of collateral security.

8. Provision of referees or guarantors.

9. Viable of the business

10. Period of repayment of loan,

STEP 2: OTHER BANKS

1. CENTRAL BANK

Central bank is the highest financial institution in a country which implements the monetary policy of the government. It is the sole authority in the banking industry which acts as banker to the government and commercial banks. 

1. Development Bank: this bank focuses on providing financial assistance for development projects, often in sectors like agriculture, infrastructure, or small businesses. Examples in Nigeria includes Bank of Industry (BOI), and Nigerian Agricultural Credit and Rural Development Bank (NACRDB).
2. Merchant bank: This bank specializes in corporate finance, investment banking, and proving financial services to businesses. They often handles large transactions and offer services like mergers and acquisitions, project financing and security underwriting.
3.  Mortgage bank: this bank provides loans for purchasing or constructing houses. In Nigeria, mortgage banks like Federal Mortgage Bank of Nigeria (FMBN) and primary Mortgage institutions (PMIs).

STEP 3: ETHICAL ISSUES IN BANKING

The following are some of the ethics which guide banks in the performance of their duties.

1. Banks should keep all financial matters of individuals confidential.

2. Bank officials must keep customers account accurate.

3. Officials of banks must avoid stealing from the bank.

4. Bank clerks must not steal from customers.

5. Banks should adhere to government regulations.

6. Bank should not give false report to the government.

7. There should be no cover-up of customer’s financial crime.

8. All documents relating to criminal activities must be made available to the appropriate government agencies when demanded.

EVALUATION

1. What is commercial bank?

2. Mention ten (10) services of commercial banks.

3. State three types of bank account.

4. Mention five ethical issues in banking.

ASSIGNMENT

1. Write out the contents of a cheque.

2. Draw the two types of cheque.