Anonymous

What Is The Importance Of The Banks?

26 Answers

Kathryn Wright Profile
Kathryn Wright answered

Bankers play very important role in the economic life of the nation. The health of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way they become very effective partners in the process of economic development. Today modern banks are very useful for the utilization of the resources of the country. The banks are mobilizing the savings of the people for the investment purposes. If there would be no banks then a great portion of a capital of the country would remain idle.

A bank as a matter of fact is just like a heart in the economic structure and the Capital provided by it is like blood in it. As long as blood is in circulation the organs will remain sound and healthy. If the blood is not supplied to any organ then that part would become useless, so if the finance is not provided to Agricultural sector or industrial sector, it will be destroyed. Loan facility provided by banks works as an incentive to the producer to increase the production. Many difficulties in the international payments have been over come and volume of transactions has been increased. Cheques, drafts bills of exchange and letters of credit are very important instruments of the banks. The banks collect these instruments drawn on banks in other cities or countries and proceeds according to the accounts of the customer's concerns.

Sajid Majeed Profile
Sajid Majeed answered
Bankers play very important role in the economic life of the nation. The health of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way they become very effective partners in the process of economic development. Today modern banks are very useful for the utilization of the resources of the country. The banks are mobilizing the savings of the people for the investment purposes. If there would be no banks then a great portion of a capital of the country would remain idle.

A bank as a matter of fact is just like a heart in the economic structure and the Capital provided by it is like blood in it. As long as blood is in circulation the organs will remain sound and healthy. If the blood is not supplied to any organ then that part would become useless, so if the finance is not provided to Agricultural sector or industrial sector, it will be destroyed. Loan facility provided by banks works as an incentive to the producer to increase the production. Many difficulties in the international payments have been over come and volume of transactions has been increased. Cheques, drafts bills of exchange and letters of credit are very important instruments of the banks. The banks collect these instruments drawn on banks in other cities or countries and proceeds according to the accounts of the customer's concerns.
Sajid Majeed Profile
Sajid Majeed answered
Banks play very important role in the economic life of the nation. The health of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth.

In this way they become very effective partners in the process of economic development. Today, modern banks are very useful for the utilization of the resources of the country. The banks are mobilizing the savings of the people for the investment purposes. The savings are encouraged and saving rate increases. If there would be no banks then a great portion of a capital of the country would remain idle.

A bank as a matter of fact is just like a heart in the economic structure and the Capital provided by it is like blood in it. As long as blood is in circulation the organs will remain sound and healthy. If the blood is not supplied to any organ then that part would become useless. So if the finance is not provided to Agriculture sector or industrial sector, it will be destroyed. Loan facility provided by banks works as an incentive to the producer to increase the production.
shahid tauqeer Profile
shahid tauqeer answered
Banking is now an essential part of our economic system. Modern trade and commerce would almost be impossible without the availability of suitable banking services. First of all, banking promotes savings. All manner of people, from the ordinary labourers and workers to the rich land owners and businessmen, can keep their money safely in banks and saving centers.
Secondly, banking promotes investments. Banks easily invest the money they get in industry , agriculture and trade. They either invest it directly or advance loans to other invensters.

Thirdly ,it is most through banks that foreign trade is carried on. Whether we export or import, it is through banks that money is transferred from one country to another. For example, bills of exchange and letters of credit are the regular ways banks use to transfer money.

Even the UN has the world bank that is like a big deposit for all the members countries. They can borrow from it according to their needs. But unwise borrowing and wasteful spending by countries like ours leads to heavy debts and economic distress. Let us have a modern , effective but simple banking system for our progress and prosperity.
amber Jhon Profile
amber Jhon answered
Investment bank is a financial institution and investment banking plays a very important role in the economy. Investment banking helps the corporations in raising capital. It facilitates the trading of securities thereby, increasing the liquidity of the securities. It provides investment opportunities to the individuals or entities. Most of the corporations get advisory services from the investment banks regarding the mergers, acquisitions and divestiture. In addition, because of the importance of the roles of investment banking, the commercial banks do not perform these roles.
Sadia Batool Profile
Sadia Batool answered
Nobody wants to credit you money if you don't have a depository account. You get superior interest rates when you have a good times past of barrowing money and paying it back. Good credit is an advantage. No credit or bad credit is a Liability. No matter which that makes life easier is ok with me.

Without bank, there would be no investment. We would all run out of money and back to bargain. By the time you earned enough to buy banquet you would not have an adequate amount to pay for a bed to sleep in.

Banking is why we are able to do all the things we do. We hate the bankers because we believe that they do nothing for us. If you are given $10,000US at the beginning of the year and compensated everyday you work. Without banking you would not have enough money to make it through one year in the average American city. Please commit to memory, you will have to run quarters and get your money from beneath the mattress when ever you find amazing you wish to buy. The time loss alone would harm most lives.
Meta Forrest Profile
Meta Forrest answered
They are a safe place to deposit money, also they will pay you interest on a savings account, you can have your salary paid into the bank,  and you can get loans or mortgages from them.
Anonymous Profile
Anonymous answered
A banking system is like the nervous system of the bank. It has to be highly reliable and reactive to ensure that all transactions are transmitted to the market and also stored in the system.
It also has a strong risk management function as this is an important constraint in banking with all the regulations rules and risks associated to wide variety of financial products dealt on the market.

Every bank today would instantly grind to a halt if their core banking system went down. (but there are disaster recovery plans for that...)
sami ullah Profile
sami ullah answered
Boss one of the major component of monetary funds allocation and storage of the world.

The main purpose of banking is to generate money from peoples who have it and it lends to those who require it.

One of the major source of credit distribution network of the world.

The state bank and commercial banks playing the major role in the economy of today that basics roots are the capitalisium.

So the world of today it most only the materialistic or capitalisium world of today banks provide more over the utilities and social services to the peoples of the world.
Anonymous Profile
Anonymous answered

Bankers play very important role in the economic life of the nation.

The main purpose of banking is to generate money from peoples who have it and it lends to those who require it.

And controlled for the money circle & inflation.

They lend at a higher interest for the people.

Shuja Zia Profile
Shuja Zia answered
Well your asking the importance of back bone of the economy of any country.Personally am also doing masters in Banking and Finance.I believe banks can make an economy strong and they are just in economy as there is back bone in human body.Japan a very good example had stagnant economy and the growth in short time it started was with help of very good banking structure.

Banladesh another example where micro finance a new sector emerged and held its ground beautifully plus gave such a boost to economy that changed live and standard of living over there.Yes pioneer Muhammad yunas played a big role in developing and making it a success but yet it was banks which helped bangladesh to bring poverty level down.

Be it developed economies or underdeveloped banks play vital role.Modern banks are playing lots of new roles and making life of common consumer as well as business men easy.

Modern Banks now do investing, lending, brokerage, real estate, borrowing, advisory and many many functions in a very systematic manner giving the community lives in countries a new and advanced and obviously a very better look.

In all If we look at banking industry's history it has improved lives of all segments of society as well as supported economies at large.Hope your satisfied with my answer. If you still feel like knowing more about importance of banks don't hesitate asking me on this site in detail.
Anonymous Profile
Anonymous answered
The important of bank system is the facilities for the of companies and production and necessary for economically system, also controlled for the money circle and inflation.
Banking is financial institution that accepts deposit and channels those deposits into lending activities
Anonymous Profile
Anonymous answered
Importance of banking in an econony cannot but  be emphasized. Banking plays the role of an intermediary ie movement of resources from places of surplus to places of deficit. Via this role resources are evenly distributed in the economy.

....mazah
Anonymous Profile
Anonymous answered
The importance of an investment banker is to help their clients organize their investment
Anonymous Profile
Anonymous answered
In general, Law is a rule of being or of conduct, established by an authority able to enforce its will; a controlling regulation; the mode or order according to which an agent or a power acts. The main goal of the EU is the progressive integration of Member States' economic and political systems and the establishment of a single market based on the free movement of goods, people, money and services.

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