A depressed economy is the economy that is not able to manage its scarce resource to obtain an optimal yield for the well being of the populations. It is that the economy where all or reasonable percentage of the economic activities are in stumbles. Such economy is characterized by low per capital income. Poor standard of living, unemployment devalued currency. Deficit budgeting Bank distresses.

Lack of social infrastructure, low standard of education and high forget debt ratio. In a depressed economy unemployment is witnessed as firms and other variable establishment are forced to close operations by the lightened inflation. Anti- social activities are increased as a result of unemployment, retrenchment and lack of financial support. The agricultural sector is not adequately financed. They resulting in poor agricultural yield. Health institutions and hospitals are reduced to mere clinic for lack of fund. Government find it difficult to provide social infrastructures for the populaces and deficit, budgeting becomes a regulars practice. What is more the standard of living of the people become poor viz. the devalued currency and the heightened inflations.

The roles of commercial banks in the face of such a depressed economy cannot be overemphasized commercial banks (including union bank Plc operate a much network of branches both in the rural and urban areas to attract deposits and offer a wide range of services.

Their banking business is referred to as retail banking. Commercial bank plays a big role in. the economic development of our countries such as;

  1. Provision of capital: Commercial banks provide both medium and short-term capital for entrepreneurs. It is not possible for businessman to provide the money needed on his own. Therefore, banks assist them by providing money in form of loans and overdraft. This encourages the establishment of industries, which help the development of the country.
  2. Financial Advice: Commercial banks not only give loans. They also provide financial advice to their customers. The   advice on what type of business to invest. financial advice is also given to the entrepreneurs on whether or not a loan is necessary all these help economic development.
  3. Management advice for small-scale entrepreneurs management of their business may be difficult. This may be because they cannot employ. Specialist in various fields of business operation. However, the banks do provide management advice whether it is desirable. This helps
  4. Encourages investment both individuals and governments are encouraged by commercial bank to Invest. They buy government treasury bills and thereby provide money for government for carrying out its operation. In addition, they provide direct loans to the government. Commercial banks buy and sell stock and shears on behalf of individual customers. This encourage individuals to invest.
  5. Encourages savings: commercial banks encourages people to save their money. They to develop in people the habit of saving their money and this increases the supply of capital funds in the economy. This is why the federal government of Nigeria encourages rural banking.
  6. The use of cheques :commercial banks make the use of cheques possible and they also operate clearing of cheques. This encourages trading activities in the economy.
  7. Help international trade: commercial banks assist in fostering international trade by helping to open letters of credit and provides credit for exporter. at times they provide references for importers and this enables foreign businesses to trade with our importers. in addition, commercial banks provide travelers cheques for those traveling abroad. Payment in to bank in foreign countries are made by these banks on behalf of their customers. all these facilities provided by commercial banks help foreign trade in a great deal.
  8. The use of cheques: Commercial banks make the uses of cheques possible and they also operate clarity of cheque
  9. International Trade: This economy trading activities in the economy.
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Help Commercial bank assist in fostering international trade by helping to open letter of credit and provide references for importers and this enables foreign business to trade with our importers in addition commercial banks provide travelers cheque for these traveling abroad.


It is undoubtedly clear that economic activities are always in shambles in any depressed economy. Government is incapacitated, as they are unable to provide for the need of the peoples.

The major problems includes:

  1. Unemployment
  2. Lack of social infrastructures
  3. Low standard of educations
  4. Poor agricultural funding


The research work is aimed at doing the following;

  1. To determine whether unemployment problems could be reduced through the activities of commercial banks.
  2. To ascertain if commercial banks has any thing to be with social responsibility.
  3. To find out if there is any positive contribution from union bank toward the standard of education.


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