What Is The Importance Of Commercial Banks In Home And Foreign? Trade

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Sibyl Zoe Profile
Sibyl Zoe answered
Commercial banks are of utmost importance to home and foreign trade. They help in maintaining trust in money matters during trading. First of all commercial banks are very important in establishment of businesses. As they assist in financial matters. People can take loans etc if they are short of funds. Then these banks help the businesses in utilizing their surplus money. Businesses can invest their surplus money in banks and get fruitful returns while having a secure place for their money. Thirdly, banks are also very important in the buying selling processes like import export. Businesses can conduct national and international transactions securely through banks. Commercial banking tools like L/C, Guarantees, Performance guarantees, material and transportation insurance helps the businesses in secure transactions.
Sibyl Zoe Profile
Sibyl Zoe answered
Commercial Banks have been the key force behind promotion of national and international trade. Now businesses are able to do safe and secure transactions all across the world due to commercial banks. Tools developed by Commercial banks such as Letter of Credit, Performance guarantee, material and transportation insurance, various payments mechanisms, etc have helped in boosting foreign trade. Businesses can now make investments of their surplus money in various investments programs developed by Commercial banks and thus keep their money safe and get a good return on them.

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