The page about the necessity of Bank in Economic Development. presently, the economic condition has been developed in the whole countries well than before. So this hard and varied root motivation is BANK. There has a slug about a Bank. “The Bank is the Blood of Modern Economic Development”. However, depending on the country’s economic development, it depends on the banking activities of the country. Economic development can only be understood when the standard living has been increases of the people of the country. However, we know that banks will ensure the use of resources. So the necessity of the bank is very high in the economic development. Now, in this below, I’ve discussed the requirement or necessity of the bank.
Necessity of Bank in Economic Development
#1. Formation of Capital
The capital is the principle in the economic development of the country. A bank creates the capital of their efficient functions of saving of depositor with assembling capital. As a result, they able to create the structure of capital. On the other hand, it would be helpful for economic development by invest in the manufacturing sector even also helpful for business finance money. So a formation of capital is one of the best parts of the necessity of bank in economic development.
Development in the industrial sector is the precondition of economic development of a country. A bank deposits of various depositors capital and helping to build industrialization of the country through the lending of Industries Owners’. Moreover, the bank encourages new industrial entrepreneurs to set up industrial enterprises successfully. So the industrialization is one of the best parts of the necessity of bank in economic development.
#3. Creating Medium of Exchange
The bank does not introduce money or currency. Although they don’t but they created the medium of exchange by the difference type of checks, hundi, pay-order, traveler’s checks, certificates etc. It is one of the features of the bank as a result, Banks do not have to take a risk of carrying cash to their donors. So creating the medium of exchange is one of the best parts of the importance of bank in economic development.
#4. Agricultural development
The overall economic development of the people of a developing country depends on their agricultural development of the country. Bank is the best helpful aspects for agriculture development. Like the different sectors of agriculture is seeds, fertilizers and pesticides purchase, irrigation etc. So banks play an important role in the agricultural development.
The bank encourages the public to save more by announcing interest which brings economic solvency. On the other hand, bank tries to provide the difference facility for their customers and makes their customers for interested in saving at a higher rate.
#6. To Help Internal and Foreign Trade
The economic prosperity of the country depends largely on domestic and foreign trade. Banks help in the internal trade as well as foreign trade. This is helpful for the difference type of trade. After all, the role of economic development of the country through various activities including credit, business advice, money transfer, payment of value. This section is helpful of the necessity of bank in economic development.
#7. Transfer of Money
The bank creates bank checks, exchange bills, drafts, pay orders, traveler’s checks, etc, to transfer money from customers’ money to a less easily and secure place. So this increases the mobility of the clientele and benefits for money transfer. In this section, transfer of money is one of the best parts of the importance of bank in economic development.
#8. Strange the Valuable Goods
A bank is the blood of modern economic development. This is the best slug for the bank activities. However, the bank reduces the financial risk by depositing money with the proper protection of various types of valuable documents, gold jewelry, share certificates, savings certificates, security bonds etc. As a result strange the valuable goods is one of the best parts of the necessity of bank in economic development.
#9. Development of standard living.
We always try to develop standard living but sometimes it hard to make. But the country’s overall development also improves the living standard of the country. Bank lending, capital formation, and development of the country, along with the overall development of the country. So that we can develop our standard living.
After all, we always have to notice about the necessity of bank in economic development. I hope, you have some idea about the importance of bank in economic development. However, if you subscribe my blog to get a new article about the business tips, bank tips, dollar earn tips, then subscribe now. So stay with me and follow another post.