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Importance of Banks in the Development of A Country

by Scotty Bedard (2020-01-17)

id="mod_22226917">Banks are one of the most important parts of any country. In this modern time money and its necessity is very important. A developed financial system of the country can ensure scope for attaining economic development. A modern bank provides valuable services to a country. To attain development there should be a good developed financial system to support not only the economic but also the society. So, a modern bank plays a vital role in the socio economic matters of the country. Some of the important role of banks in the development of a country is briefly mentioned below.

85b31894525d54735d63ca539991ce76.jpgI- Promote Saving Habits among People

Bank attracts depositors by introducing attractive deposit schemes and providing rewards or return in the form of interest. Banks providing different kinds of deposit schemes to its customers. It enables to create banking habits or saving habits among people.

II- Capital Formation and Promoting of Industries

Capital is one of the most important parts of any business or industry. It is the lifeblood of business. Banks are helpful to increase capital formation by collecting deposits from depositors and converting these deposits in to loans and advances to industries.

III- Easiness of Trade and Commerce Functions

In this modern era trade and commerce plays vital role between any countries. So, the money transaction should be user friendly. A modern bank helps its customers to sent funds to anywhere and receive funds from anywhere of the world. A well developed banking system provides various attractive services like mobile banking, internet banking, debit cards, credit cards etc. These kinds of services fasten and easing the transactions. So, bank helps to develop trade and commerce.

IV- Generate Employment Opportunities

Since a bank promotes industry and investment, they automatically generate employment opportunity. So, a bank enables an economy to generate employment opportunity.

300 Practice Questions for the PMP Exam: A PMP Exam Question Bank (PMP Ace Series Book 2) Buy Now V- Promote Agricultural Development

Agricultural sector is one of the integral parts of any economy. Food self sufficiency is the major challenge and goal of any country. Modern banks promotes agricultural sector by providing loans and advances with low rate of interest compared to other loans and advances schemes.

VI- Implementation of Monetary Policy

Monetary policy is an important policy of any government. The major aim of monetary policy is to stabilize financial system of the country from the dangerous of inflation, deflation, crisis etc. Banks are helpful to implement policies relating to monetary matters successfully.

VII- Balanced Development

Modern banks are spreading its operations throughout the world. We can see number of big banks like Citi bank, Baroda bank etc. It helps a country to spread banking activities in rural and semi urban areas. With the spreading of banking operations around the country, they help to attain balanced development by promoting rural areas.

Modern bank plays vital role in the social- economic development of the country. A developed banking system enables the country to attain balanced development without any special consideration of rich and poor, 코인카지노 cities and rural areas etc.

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20 months ago

very easy to understand. but one thing I noticed that 'to sent' is wrong formation which is in the para iii.

Akshaya Chavan

21 months ago

Thanks you very much good article


22 months ago

Very useful


2 years ago

This article help me in writing project

captain wils

2 years ago

this is very easy thanks for this

Daphne Kamanga

2 years ago

Very useful, many thnx


2 years ago

Thank u very much may God bless u


2 years ago

thank u very much. May God bless u.

Abdul malik pk

2 years ago

I appreciate your work and it was

too usefull for students.


3 years ago

Thank u so much


3 years ago

Thanks alot


3 years ago

Thanks for reading and posting your comments

Chidinma Nebe

3 years ago

Very useful. Thanks.


3 years ago

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3 years ago

Thanks ...very helpful for my project


3 years ago

Thank you this was very useful

mehaboob Nadaf

4 years ago

this is very useful for middle income country people to improve the banking system


4 years ago

very useful, thanks a lot

mp simbi

4 years ago

Very useful and relevant to all those studying banking and social science


4 years ago

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4 years ago

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4 years ago

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4 years ago

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4 years ago

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Hiya Chatterjee

4 years ago

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4 years ago

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