Role of Banks in the Economy

Banks are one of the most important parts of any country.A modern bank provides valuable services to a country.commercial banks play an important role in the financial system and the economy.As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner.these financial services help to make the overall economy more efficient.Some of the important role of banks in the development of a country is:

^{Play vital role in the social- economic development of the country}

Development of industries in the country according to the requirements of the economy

perform an invaluable service by encouraging savings among the people

Transfer saving into Investment