Role of Commercial Banks in the Economic Development of a Country:
Banks mobilise small savings of the public and channelise those savings into productive purpose. This increases the flow of money in any economy, which is the life good of its growth. The role of commercial banks in economic, development rests chiefly on their role as financial intermediaries. In this capacity, commercial banks help drive the flow of investment through out the market place through several forms of lending.
It helps an individual to start his business by providing capital and necessary information and then helps in running the business and expanding it by supplying credit as and when required. The aggregate effect of business activity generates employment around the country, and promotes self dependency or financial independence. It also helps the government of a country by financing to general welfare programmes for the benefit of the country. It also helps in transfer of funds from one place to another and help in the settlement of debts which in result promotes trade. Thus hanks are the life blood of commerce and holds a significant position in the modem economy of any nation.
