Role of commercial bank in financial market
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A financial market is a market in which financial bonds, securities and commodities are purchased and sold. These are sold at either low transaction prices or at prices that are related to the demand and supply.
A commercial bank is a good source of investment in the financial market. The aggregate of small loans it provided can be turned into major investment for firms etc. It can not only provide loans to the individuals who plan to buy the products but also help by providing loans to them to wish to sell their product.
A commercial bank also reduces the rate of risk bearing as it is a good analyst of the money market. As security is its main aspect, commercial bank works well on verifying the financial market and its products.
A commercial bank is a good source of investment in the financial market. The aggregate of small loans it provided can be turned into major investment for firms etc. It can not only provide loans to the individuals who plan to buy the products but also help by providing loans to them to wish to sell their product.
A commercial bank also reduces the rate of risk bearing as it is a good analyst of the money market. As security is its main aspect, commercial bank works well on verifying the financial market and its products.
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Answer:
Roles pf commercial bank to the financial market is as follows.
Explanation:
The general role of commercial banks is to provide financial services to general public and business, ensuring economic and social stability and sustainable growth of the economy.
In this respect, credit creation is the most significant function of commercial banks to financial markets.
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