The role played by financial institution in the economic development of a community is to be increasingly important that it can not be over emphasized. The recent development in the activities of these financial institutions has therefore induced to center this project work on the role of financial institution in the economic development of Akure south local government.This project, therefore provides the banking knowledge of financial institution (insurance company, co-operative society, commercial bank e.t.c.) in writing the frame work of economic development, the mode of operation of the bank to be considered in details together with its services to the community. The reader will be informed about the activities and the role of their banks. It is all about data analysis of the bank operation which examines the historical back ground and its mode of operation. The second chapter deals with the summary of related literature which comprised the origins of banks, the structure of banks, the types of banks and their functions. The third chapter contains the research method, research design, population and sampling technique, research instrument and data collection. In the last two chapters which chapter are four and five deal with the data analysis, results, discussion and findings. While in the last chapter of the research work, the problem against the bank in meeting their laid down objectives and possible recommendations to ameliorate the problems were finally discussed.