Role of Banks in Economic Development,

The role of Banks in Economic Development are as follows:

01. Banks motivate the people for savings through various programs and collect the dispersed savings of the people. Further bank invest it in our poor economy.

02. Banks provide the rural small business with loans from deposited money which plays a crucial role in our rural development. Specially, the micro credit programs of different banks made the rural landless people bank able and provided them with required capital for business and other economic activities.

03. Banks play a crucial role in rural capital formation. Then distribute loans to our poor people for starting a productive sector as well as any other self sufficient economic activity.

04. Commercial and specialized banks, especially Nationalized Commercial Banks (NCBs) distribute agricultural loans to our rural people which make them able to invest in their firms or lands. Because most of our farmers are poor they cannot invest enough to increase the production.

05. Bank can play a crucial role in sustaining and developing our small and cottage industries. Because most of our small and cottage industries are being closed due to lack of enough capital.

06. Bank can provide our unemployed youths with training and loan to start business or to invest in a farm. In this way our unemployed youths will be self reliant, lessen the intricate problem of unemployed and improve the standard of living our rural areas.

07. Banks play a crucial role in mentioning the disadvantaged groups in community under some special programs. Even, through making the disadvantaged people economically self sufficient banks play important role to empowers them and lessen the social me quality thereby.