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THE OPERATION AND CONTROL OF CUSTOMERS ACCOUNT IN COMMERCIAL BANKS

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CHAPTER ONE

INTORDUCTION

1.1 BACKGROUND OF STUDY

The control of customer’s accounts by commercial banks dates back to a very long time and the genesis can be said to be of a very humble nature. Long before there were any banks, people kept money and valuables with the goldsmith for safe custody because the goldsmith in those days were highly respectable members of the society who could be trusted because they had strong sets where they kept valuable. As time went on, the goldsmith observed that the depositors needed and therefore collected only a little amount of their money at any particular time.

The goldsmith then formulated a system thereby he would control and safeguard the money deposited with him properly in such a way that while he traded with the depositors money, he had enough cash to meet any depositors needs at any time, that is, this carefully designed system of control enabled the goldsmith to always ensure that he was never short of cash when any depositor needed some or all of his money. This trend continued, but as the years went by, different changes occurred until banks came into existence.

According to the Oxford Advanced Learners Dictionary

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