Bank Services Understanding Bank Services and Ethics Business Studies JSS 2 First Term Lesson Notes Week 11

Business Studies JSS 2 First Term Lesson Notes – Week 11

Subject: Business Studies

Class: JSS 2

Term: First Term

Week: 11

Age: 12-14 years

Topic: Bank Services

Sub-topic: Commercial Banks and Their Services

Duration: 40 minutes

Behavioural Objectives

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

1. Define what a commercial bank is.
2. Identify the services provided by commercial banks.
3. Discuss ethical issues related to banking.

Keywords

• Commercial Bank
• Bank Services
• Ethical Issues
• Deposits
• Loans

Set Induction

The teacher asks: “What do you think a bank does?” This encourages students to share their ideas about banking and its role in the economy.

Entry Behaviour

Students have some knowledge of banks and may have personal experiences with banking services.

Learning Resources and Materials

• Posters illustrating bank services.
• Samples of bank forms (e.g., deposit slips, loan applications).
• Case studies on ethical banking practices.

Building Background/Connection to Prior Knowledge

Students have learned about financial transactions. This lesson builds on that knowledge by focusing specifically on banks and their roles.

Embedded Core Skills

• Critical thinking
• Ethical reasoning
• Communication skills

Learning Materials

• Lagos State Scheme of Work
• Business Studies for Junior Secondary Schools (Textbook)

Reference Books

• Lagos State Scheme of Work
• Business Studies for Junior Secondary Schools (Textbook)

Instructional Materials

• Whiteboard and markers
• Visual aids showing bank services
• Case study handouts

Content

I. Definition of Commercial Bank

A commercial bank is a financial institution that provides various services to individuals and businesses, including accepting deposits, providing loans, and offering payment services.

II. Services Provided by Commercial Banks

1. Accepting Deposits: Banks accept money from customers for safekeeping.
2. Providing Loans: Banks lend money to individuals and businesses for various purposes.
3. Savings Accounts: Customers can open savings accounts to earn interest on their deposits.
4. Current Accounts: These accounts allow customers to deposit and withdraw money easily for daily transactions.
5. Payment Services: Banks facilitate payments through cheques, debit cards, and electronic transfers.
6. Foreign Exchange Services: Banks offer currency exchange services for international transactions.
7. Financial Advice: Banks provide financial planning and investment advice to customers.

III. Ethical Issues in Banking

1. Fraud: Banks must prevent fraudulent activities and protect customer information.
2. Transparency: Banks should be open about fees and interest rates to build trust with customers.
3. Fair Lending Practices: Banks should not discriminate against customers based on race, gender, or background.
4. Customer Privacy: Banks must safeguard customers’ personal and financial information.
5. Responsible Lending: Banks should lend responsibly and avoid placing customers in unmanageable debt.

Class Activity Discussion

15 Frequently Asked Questions (FAQs)

1. What is a commercial bank?
   • A financial institution that provides services like loans and deposits.
2. What types of accounts can you open at a bank?
   • Savings accounts and current accounts.
3. Why do banks offer loans?
   • To help individuals and businesses finance purchases or projects.
4. What is a savings account?
   • An account that earns interest on deposited money.
5. How do banks ensure customer privacy?
   • By implementing security measures to protect personal information.
6. What are ethical issues in banking?
   • Issues like fraud, transparency, and responsible lending.
7. Why is transparency important in banking?
   • It helps build trust between banks and their customers.
8. What is a current account?
   • An account designed for everyday transactions.
9. What services do banks offer for international transactions?
   • Foreign exchange services.
10. Why should banks practice fair lending?

• To ensure equal access to financial services for all customers.

11. How do banks prevent fraud?

• By monitoring transactions and using security measures.

12. What is the role of financial advice in banking?

• To help customers make informed financial decisions.

13. What are payment services?

• Services that facilitate money transfers and payments.

14. What happens if a bank does not follow ethical practices?

• They may lose customer trust and face legal consequences.

15. What is responsible lending?

• Lending that ensures customers can repay their loans without financial hardship.

Presentation

1. Step 1: The teacher revises the previous topic on financial transactions.
2. Step 2: The teacher introduces the new topic: Bank Services, explaining the definition and importance of commercial banks.
3. Step 3: The teacher allows students to share their experiences with banks, correcting misconceptions as needed.

Teacher’s Activities

• Explain the role of commercial banks in the economy.
• Discuss various bank services and their importance.
• Introduce ethical issues in banking with real-life examples.
• Meaning of a Bank 

  Banks are financial institutions where money is put for safekeeping and where money can be paid out to the owners when the need arises.

   

  Types of banks

  Central Bank (CBN) is the government bank and which acts as the banker to other banks, the Nigeria industrial Development Bank, Agricultural and Cooperatives Bank, Mortgage Bank and Commercial Banks.

   

  Examples commercial banks are: First Bank of Nigeria (FBN) PLC, Union Bank of Nigeria (UBN) PLC, United Bank for Africa (UBA) PLC, Zenith Bank (PLC), Guaranteed Bank (PLC), WEMA Bank (PLC), Skye Bank(PLC).

   

  Functions of Commercial Bank

  1. Commercial banks accept deposits from customers into their different accounts for safe-keeping and make it possible for them to withdraw the money when the need it.
  2. They make payments on behalf of their customers. They perform investment services and receive and pay dividends to their customers.
  3. Commercial banks grant loans and overdrafts to aid their customers’ trade.
  4. They provide foreign exchange to their customers to facilitate their foreign transactions.
  5. They issue travelers cheques to their customers when travelling abroad for business.
  6. They safe-guard valuables such jewelry, share certificates and other important documents.
  7. Through e-banking facilities, they make withdrawals and transfers of money from one place to another very easy and faster especially in the course of business

   

  Commercial banks provide the following banking services:

  Current Account

  A current account is an account from which the owner can withdraw money at any given time provided there is enough money in it. Choques’re normally used to withdraw money from the current account. But with e-banking facility, a customer can also withdraw money from his current account with ATM. Payments can also be made from the bank account through a standing order.

   

  Conditions for Dishonouring a Cheque

  1. A bank can dishonor a cheque if the amount written on the cheque is more than the amount in the drawer’s account.
  2. The signature of the drawer does not agree with his specimen signature.
  3. The cheque is not signed.
  4. The cheque may be signed but has become stale. A stale cheque is an exchequer that is not presented for payment before the end of six months of its issue.
  5. There is a disagreement between the amount in figures.
  6. The drawer does before the presentation of the cheque for payment.

   

  Types of cheques

  1. Open Cheque
  2.   Bearer cheque
  3.   Order cheque
  4.   Crossed cheque

   

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  Savings Account

  A savings account is an account in which the money saved earns interest at prevailing interest in the economy at the given time.

  Deposits made into a savings account are not for a specified fixed period of time for the purpose of interest. Interest is paid on the money kept in the savings account but the interest is lower than the interest on money kept in the fixed deposit account. Withdrawal can be made from savings account at any time but not more than four times in a month in order to earn the required interest. To save money in a savings account, a customer has to fill in the savings form and complete a withdrawal form to withdraw money from the account.

   

  Fixed Deposit Account

  A fixed deposit account in which money is kept for a specified period, say, six months, one year, or more, before a customer can withdraw it. Ifa customer wishes to withdraw money before the stated period, he has to give sufficient notice to his bank.

   

  Bank Statement 

  The following details usually appear in the statement of account or bank statement:

  (i) Name of the customer.

  (ii) Account Number.

  (iii) Payment or Deposit made to the bank within the stated period.

  (iv) Withdrawal effected within the same period.

  (v) Bank charges for its services.

  (vi) Balance for the stated period.

  (vii) The address of the customer

  (vii) Interest on deposit.

  (ix) VAT and other types of taxes or commissions deducted.

   

  Other Banking Services 

  Overdrafts

  An overdraft is the amount of money which a commercial bank allows a customer to withdraw over and above the amount he has inhis current account.

  An overdraft does not always need a guarantor, surety or security. A good and well-kept current account by a customer will enable the bank grant an overdraft.

   

  Loans

  A loan is a fixed sum of money which a customer borrows from a commercial bank.

  A bank loan requires sureties, guarantors or some security.

  Traveller’s cheque

  A Traveller’s cheque is a document issued by banks on payment of local currency and which is acceptable international currency.

  When a Nigerian commercial bank issues the cheque to Travellers in exchange for the amount paid in Naira, it charges a commission for the service.

   

  Electronic-Banking(E-Banking)

  E-Banking is an electronic banking system which enables banks to provide banking services to customers that are less tension filled. With e-banking services, a customer can withdraw money from his account at any branch of his bank in Nigeria. Anyone can also deposit money into the same account at any branch of the bank.

   

  Essentially Electronic-Banking has provided the following facilities:

  (i)    An opportunity for a customer to deposit money into his account at any branch of his bank.

  (ii)Similarly, withdrawal of money can also be done at any branch.

  (iii) A customer can make an online check of his account balance and can equally transfer money from one account to the other.

  (iv)A customer can use Automated Teller Machine (ATM) to withdraw cash from his account on any day and at any time of the day.

  (v) There is a reduction of time in clearinghouse at inter-bank clearing houses.

  (vi) Businessmen no longer have to carry cash about when going on business trip.

  (v) They only need to deposit the money in the bank and at the completion of their purchases, they go to the bank to withdraw money and make payments for the wares purchased.

   

  There are many other facilities associated with e-banking (Automated Telemechanic ATM)

  This is a computerized self-service device which enables the holder of a debit card and Personal Identification Number (PIN) to withdraw cash from his account and access other banking services. A holder of an ATM can use it to perform the following banking activities:

  (i) Make fund transfer into or out of his account.

  (ii) Check his account balances.

  (iii) Make cash withdrawal from his account.

  (iv) Print out mini bank statement of his transactions.

  (v) Make payment of his bills.

Learners’ Activities

• Participate in discussions about banking services.
• Role-play scenarios where they practice asking for bank services.
• Discuss ethical dilemmas in banking situations.

Assessment (Evaluation Questions)

1. What is a commercial bank?
2. List two services provided by banks.
3. Why is ethical banking important?
4. What is a savings account?
5. How do banks protect customer privacy?
6. What are the risks of not being transparent in banking?
7. Name one type of loan a bank offers.
8. What is responsible lending?
9. How do banks facilitate payments?
10. What are the ethical issues related to banking?

Conclusion

The teacher goes around to mark and provide feedback on the topic. Students are reminded to consider ethical practices in all financial matters.

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