PROBLEMS OF COMMERCIAL BANKS IN NIGERIA. Urban concentration: Majority of the commercial banks are located in urban centres thereby denying.-the rural areas banking services

  • Low savings: Majority of the populace are poor and this leads to their inability to save in commercial banks.
  • Corruption: There is a high level of corruption in the banking industry as some
    bank managers and officials embezzle money and grant unauthorized loans to friends and relatives because of their selfish interest.

  • High level of illiteracy: High level of illiteracy among the people makes banking operations and services very difficult.

  • Government’s frequent Interventions: Government’s frequent interventions in the operation of banks sometimes make things difficult for commercial banks to operate smoothly and efficiently.

  • Low patronage: Commercial banks are not patronized as it should be as a result of ignorance, poverty and illiteracy.

  • High interest rates: The high interest rate charged by banks makes it difficult for prospective customers to take loans from the banks.     
  • Lack of Innovative banking practices: Most commercial banks are not innovative in their

banking practices as customers are not given the prompt attention they desire.

  •  Capital shortage: Most of the commercial banks have low capital base and this makes it impossible to grant loans to prospective customers.
  •  Non-repayment of loans: Some customers that took loans sometimes fail to repay the loans and this has led to the collapse or failure of some commercial banks.

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