What according to you are the factors that are important for a country’s growth and economic development? There can be many such factors, but one of all that really plays a crucial role in the development of a country is a banking system.
Why banking system is important? It is simply because it involves money that directly impacts an economy. It’s true that the financial stable economy is certainly one major factor that can determine an economic growth. There is certainly a need of a developed financial system that can help in economic development and support the society. It won’t be wrong to state that banks do help in socio-economic matters of the country. So, if you also wish to start saving, just call on Santander, as it is one of the largest banking systems in UK and your money will be in safe hands.
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Briefly discussed are some roles of the banks that help country in development.
- Encourage people to save:
Today’s world is full of expensive items and services which makes it really difficult for the people to save. Banks try to attract depositors with attractive deposit schemes. Banks even provide rewards or return in the form of interest to the people. This is how people usually get attracted towards schemes and start saving. All this results in generating banking habits amongst the people and also encouraging people to save thus, creating saving habits in among people. - Support industries via capital formation:
The capital that industries borrow from banks at first hand for set up and other functions to run businesses smoothly is utmost important. Again, banks play a major role by lending the industries huge and hefty amounts of capital that helps them to start and function smoothly. Where this capital comes from? This capital is same that banks have managed to get deposited by depositors and then converted it into the capital to lend over to the industries. - User-friendly transactions:
Nowadays, businesses have grown big and people trade all over the globe. Smoothness of trade is simply based on the timely and safe money transactions. Banks make it possible for the business people to do trade anywhere in the world with the help of services like mobile banking, using debit and credit cards, and usage of internet banking as well. This is how banks help in encouraging healthy trade and commerce along with helping an economy to develop. This write- up covers some points on how banks help an economy to grow.