How The Commercial Banks Are Important In The Development?


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Anonymous Profile
Anonymous answered
Intercontinental Bank contribution on the nigeria economy
Nouman Umar Profile
Nouman Umar answered
Banks play an important role in the economic development of a country. If the banking system is un organized and inefficient, it creates maladjustments and impediments in the process of development. In Pakistan the banking system is very well organized. The state bank of Pakistan established on July 1, 1948 stands at the apex and is responsible for the operation of the banking system in Pakistan. The other banks which form the banking structure in Pakistan are playing an active role in the economic development of the country.
The role of the commercial banks in the growth and development of sound and healthy economy of the country is briefly discussed below:

Saving mobilization: The commercial banks namely national bank of Pakistan, Habib Bank, Allied bank etc. Commercial banks have opened up branches in urban and rural areas to mobilize savings of the people.

Financing Development project: The banks and other development finance institutions like IDBP, ADBP, PICIC etc advances short and medium term loans for financing of the development projects both in the private and public sector and thus help in accelerating the rate of economic development in the country.

Facilitating trade activities: The credit institutions collect savings of the people and make them available for facilitating trade activities both inside and outside the country.

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