Role of commercial bank in economic growth is discussed as follows:
1. For economic growth, high saving rate is needed. Commercial banks secures the savings of the public and give them interest on it. It leads to developing the saving culture in the economy.
2. Savings of public is made mobile and available for various producers in the economy. If banks would not have been then savings would have been only with the savers. It would not be available for the producers.
3. Banks optimally allocates the resources. It allocates resources in the field of social welfare and in the field where there is high profit rate.
