Question

discuss how banking leads to economic development​

Answer 1

• The banking system plays an important role in the modern economic world. Banks collect the savings of the individuals and lend them out to business- people and manufacturers.Thus, the banks play an important role in the creation of new capital (or capital formation) in a country and thus help the growth process.

Answer 2

Answer:

The banking system plays an important role in the modern economic world. Banks collect the savings of the individuals and lend them out to business- people and manufacturers. ... Thus, the banks play an important role in the creation of new capital (or capital formation) in a country and thus help the growth process.