Economic Development Than Other Financial Institutions

 

Are commercial banks more important for economic development than other financial institutions? explain in detail.

 

Commercial banks play an important and active role in development of a country. In the economic growth Financial institution is help and provide the money supply services to the general public and official institutes. basically the commercial banks are the part of financial institutions, like others. commercial banks were established in 19th century and the main function of banks are accepting deposits of individual and non-individuals (companies, partnership, etc). And lending (they gives loans and other credit facilities to individual and non inviduals for their business and personal requirements). In any developed country has three main pillars education, military and economy. first two is depending on economy if economy will grow than country will developed.

 Economic Development Than Other Financial Institutions

 

The banking system grow money in form of interest and it will add the country national income. It means GDP will increase, there is many public and private sectors like industries, construction, transport, agriculture, utilities, trade, communication government services, housing services, health, defense and many other services which provides to public. As compare to other financial institutes the banking system are more reliable for each department of country. Because according to technology the commercial banks system is more efficient, and effective and here banks provide depositor’s services within minutes like digital trancations, money transfer services from one country to another. Commercial banks help the whole department financially each and every time The commercial banking system is more advanced system for those all department which can do the whole transaction to easily.     

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WRITTEN BY: MUHAMMAD AJMAL KEERIO.

EMAIL: ajmalkeerio55@gmail.com.