The role of bank in economic development - part one

                THE ROLE OF BANK IN ECONOMIC DEVELOPMENT – PART ONE

•  Commercial banks play an important role in the economic stability of a country.
•  Banks provide funds to everyone to increase economic activities in the country.
•  Pakistani banks have to keep their statuary balances with the State Bank of Pakistan.
•  Besides deposit collection, banks offer a wide range of services.
•  Banks assist the traders in international trade.
•  Banks collect and negotiate the foreign bills.
•  They provide sufficient amount of capital to various sectors.
•  In developing countries like Pakistan, the utility of banks is more then important.

Commercial banks play an active role in determining economic stability. They meet financial needs of the various sectors of the economy. As a matter of fact, the capital is the basis of commerce and industry and well-established banking system provides funds to all sectors of the economy including small businessmen, industrialists, contractors, farmers, cultivators, importers, exporters and traders. The banks act as intermediaries to encourage the giving and taking of credit so that commercial transactions become possible without any delay.

The Pakistani banks with hundreds of branches are solvent. They keep thier statuary balances with the State Bank of Pakistan and look for the leadership towards it at all times. At present hundreds of branches are extending banking service to people of the country. The importance of commercial banks in Pakistan economy can be judged from the following.

In addition to collecting deposits and making advances anks offer a wide range of ancillary services to their customers. Undertaking stock exchange transactions on behalf of their customers is another activity of the commercial banks. They pass on their customers order to stock exchange brokers who try to earn a profit for the stockowners.

Too be continue - part two

Here...Alas Mrose...the original contents by www.sensualityface.com or www.fairyage.com / describe with the help of B. Com part I & II