Question

how do banks play a crucial role in the development of a country give minimum ten points

Answer 1

Banks play a crucial role in the development of country as

1. Banks ask for the Collateral from people

2. Collateral acts as and guarantee until the loan is repaid.

3. From the Collateral there is a less possibility of not p a y i n g l o n e.

4. Play important role in capital formation which is essential for an economic development of a country

5. Demobilized small savings of the people scattered over a wide area through their network of branches all over the country and make it available for productive for purpose.

Hope it help you

Answer 2

Bank loans facilitate commerce. Manufacturers borrow from banks the money needed for the purchase of raw materials and to meet other requirements such as working capital. 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