Accountancy, asked by dahalmukti352, 1 month ago

Bank directly affect our life



Answer this who know only. Other not ​

Answers

Answered by omichandorkar
1

Explanation:

Banks are closely linked with our everyday lives and activities. Drawing salaries,

paying bills, buying homes, building up savings and taking out loans all involve

transactions with banks. Businesses also rely on the banking system for

settlement of their transactions and meeting other financial needs. Banks also

interact among themselves in an international network to deliver financial

services to their overseas as well as local customers. The links among banks and

the fact that banking stability is essentially founded on public confidence mean that problems of one bank can easily spread to other banks and financial institutions. Any large disruption of banking operations will affect society as a whole. Banking stability is, therefore, crucial to minimising the extensive

economic and social impact that may arise from problems in the industry.

The HKMA ensures general stability and effective working of the banking system

through the regulation of banking and deposit-taking business and the supervision of AIs. The HKMA has responsibility to promote proper standards of conduct, encourage sound and prudent business practices, and to help prevent

illegal, dishonourable or improper practices in the banking industry. The HKMA

derives its regulatory powers from the Banking Ordinance.

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