Abstract:

Every modern economy recognizes a sound financial system as a necessary and sufficient condition for rapid growth and development. Banks, insurance companies, stock exchanges, and other financial institutions make up the financial system. The banking sector is a critical component of Nigeria's financial system. The banking industry dominates the Nigerian financial system, accounting for roughly 90 percent of total assets and 65 percent of the Nigeria Stock Exchange's market capitalisation (Soludo, 2009; Sanusi 2012). Given the significant role those financial institutions play in customers' everyday lives, companies, important events, and future plans, they incorporate social responsibility to help customers improve and sustain financial wellbeing and make a constructive contribution to society (Swanton, Gainsbury, and Blaszczynski, 2019). Commercial banks perform an important role as financial intermediaries, efficiently channeling cash from depositors to borrowers, which make them susceptible to market, credit, liquidity, and operational risks. Commercial banks, according to Niba (2011), are institutions that accept deposits, originate business loans, and provide related services. Commercial banks, according to Zhufanyi (2004), serve three basic functions: accepting deposits, lending, and acting as payment agents. Direct loans, overdrafts, and discounting bills are the three types of lending.