Why is the banking system so important?


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rocker aks Profile
rocker aks answered

Banks are one of the most important part of any country. In this modern time money and its necessity is very important. A developed financial system of the country ensure to attain 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 are briefly showing below.

I- Promote Saving Habits Among People

II- Capital Formation and Promoting of Industries

III- Easiness of Trade and Commerce Functions

IV- Promote Agricultural Development

V- Implementation of Monitory Policy

Matrin Max Profile
Matrin Max answered

The banking system is critical to economic stability because it is the engine of liquidity, it concentrates money to be loaned.

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