What is the of banks in the establishment of industries?With answer?
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If you’re asking the function of banks, then it is as follows:-
•1 Banks provide industries with loan so that they can buy the inputs I.e the raw materials that they require for manufacturing the product.
•2 Banks collect the savings of the individuals and lend them out to manufacturers. Thus, the banks play an important role in the creation of new capital.
•3 Manufacturers borrow from banks the money needed to meet other requirements such as working capital.
•4 The banking system facilitates internal and international trade. A large part of trade is done on credit. Banks provide references and guarantees, on behalf of their customers, on the basis of which sellers can supply goods on credit.
•1 Banks provide industries with loan so that they can buy the inputs I.e the raw materials that they require for manufacturing the product.
•2 Banks collect the savings of the individuals and lend them out to manufacturers. Thus, the banks play an important role in the creation of new capital.
•3 Manufacturers borrow from banks the money needed to meet other requirements such as working capital.
•4 The banking system facilitates internal and international trade. A large part of trade is done on credit. Banks provide references and guarantees, on behalf of their customers, on the basis of which sellers can supply goods on credit.
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