preface for project on role of bank in economic development
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The role of banks in economic development is to remove the deficiency of capital by stimulating savings and investment.
A sound banking system mobilizes the small and scattered savings of the community, and makes them available for investment in productive enterprises.
In any plan of economic development, capital occupies a position of strategic importance. No economic development of sizable magnitude is possible unless there is an adequate degree of capital formation. A very important characteristic of an under-developed economy is deficiency of capital which is the result of insufficient savings made by the community. Backward economies hardly save 5% of the national income, whereas they should save and invest at least 15%
A sound banking system mobilizes the small and scattered savings of the community, and makes them available for investment in productive enterprises.
In any plan of economic development, capital occupies a position of strategic importance. No economic development of sizable magnitude is possible unless there is an adequate degree of capital formation. A very important characteristic of an under-developed economy is deficiency of capital which is the result of insufficient savings made by the community. Backward economies hardly save 5% of the national income, whereas they should save and invest at least 15%
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