Introduction The roles of Commercial Banks have evolved over the decades to adapt to the new economic trend of the world. Peek & Rosengren (1997) notes the demands of the new economy as a result of technological innovation, deregulation and globalization among other reasons has enabled the Commercial Banks to diversify its roles. Thus, most Commercial Banks lead in providing vital functions such as; accepting deposits, granting advances and loans and providing essential information and services which are important in financial decision making (Li Ma & Huang, 2011). Effective management and leadership is ideal for Commercial Banks to carry out its duties and responsibility without fear of failing. The issue of management and leadership combined with other volatile challenges perhaps contributed to fall or rather the collapse of the Northern Rock Plc, in the United Kingdom. Therefore, with close reference to the roles played by the Commercial banks, the writer will explore the reasons which contributed to the fall of the Northern Rock Plc. Functions of Commercial Banks According to Westerfield (1921) Commercial bank as a financial institution provides several functions. It provides the financial needs of other important sectors of the economy such as communication, industry, trade and agriculture among others (Ahrendsen et al, 2011). This suggests that they are required in a system of social and economic needs. The functions performed by the commercial banks are evolving with time and consequently of late; they are becoming customer centered and diversifying their functions. The commercial banks functions are distinct, and they can be divided into major categories. The first category is the basic functions. According to Accounting and Finance (2011) one of the primary functions of commercial banks is accepting deposits. Functions and Roles of Commercial Banks in the Economy (2010) also notes that accepting deposits is a significant task played by a commercial bank. The bank mobilizes deposits from the public or its clients. These deposits are usually in the form of fixed, saving and recurring deposits among others. People with extra savings and income find it convenient deposit their money with commercial banks. Basing on the nature of the deposits, the amount deposited with the bank accrues interest. Second, commercial banks are important in providing advances and loans. According to Accounting and Finance (2011), commercial banks grants advances to businesses and members of the public at significantly higher interest rate than the one allowed by the banks on some deposits accounts. The fee of interest charged on advances and loans differs depending on the cash deposited, method of payment, purpose and duration. Hence, the differences that arise between the rate of interests on deposits and the amount charged on loans provide the bank with a source of income (Harborne, 1985). Commercial banks allow a credit for a specific period of time. However, term loans, that is, a loan that takes more than a year, may be given. The beneficiary may opt to withdraw the entire amount in installments or in a lump sum. However, the rate of interests is charged on the full amount of the loan. Commercial banks grants a loan against the security of certain asserts. According to Sinkey (1998) the advance is a credit facility provided by commercial banks to its clients. It differs from a loan in that; the loan may be dispersed for a longer duration. However, advances are prov