What is the role of banks in development of country?
- 1 Answers
- 6928 Views
- College School Exams Tests, UTI, I also Faced
- E-Mail Answers
Answer Posted / faalih
Commercial banks are the most significant of the financial
intermediaries. They play important role in all the areas
listed by you except that in overcoming unemployment and
encouragement to young entrepreneurs their role would
depend the policies and programs of their stakeholders.
Loans account for over half of the total bank assets in the
U.S. commercial banking system. Bankers lend to businesses,
consumers, and governments (both domestic and foreign). The
second largest category of bank assets is investments, held
by banks for both liquidity and income purposes. These
investments include U.S. government and government
guaranteed securities, the bonds of states and
municipalities, and private securities. Banks also hold
cash assets, mostly for liquidity purposes, but also
because the banking authorities require that a certain
fraction of deposits be held in cash-asset form. Of the
banking system's liabilities, about three-fourths are in
the form of deposits, primarily from individuals and
companies, but also from domestic and foreign government
agencies. Nondeposit liabilities include borrowings on the
federal funds market.
Role of Central Banking
The foremost monetary institution in a market economy is
the central bank. These are usually government-owned
institutions and are responsible to the national interest.
Most central banks perform the following functions: They
serve as the government's banker, act as the banker of the
banking system, regulate the monetary system for both
domestic and international policy goals, and issue the
nation's currency. As banker to the government, the central
bank collects and disburses government income and receipts,
manages the issue and redemption of government debt,
advises the government on all matters pertaining to
financial activities, and makes loans to the government. As
banker to the nation's banks, the central bank holds and
transfers banks' deposits, supervises their operations,
acts as a lender of last resort, and provides technical and
advisory services. Monetary policy for both domestic and
foreign purposes is implemented and, in many countries,
decided by the national banking authorities, using a
variety of direct and indirect controls over the financial
institutions. Coins and notes that circulate as the
national currency are usually the liability of the central
bank.
| Is This Answer Correct ? | 8 Yes | 4 No |
Post New Answer View All Answers
hi i am shortlisted to assistant manager in idbi bank..could u help me how to prepare for dat
what is the expected answer in bank Po interview when the panel member asks why are you interested in banking?
hi friends. i have cleared ibps po exam. i have completed post graduation in computer applications. i have only cumulative mark sheet for my under graduation. i lost my individual marksheets. is it compulsary for ibps po interview. plz reply me. thanks in advance.
if anyone has already given gd & pi of sbi po, could u please send some information about gd topics to my email id patilvb4008@gmail.com
I have Called fr SBI PO interview will u plz suggest wat kind of questions are asked i m already working in SBI as Assistant.
hi...i am rahul, i am trying to prepare for PO exam so can anyone send me syllabus and sample question paper for PO exam. please send to my mail_id: rsbarahate@yahoo.com Thanks!
sir...i am a electronics and communication btech graduate...can you plz give me answer 4 the question for sbi bank po..how could you utilize your technical skills for the benefit of bank???
questions when did u finish ur Postgrad what did u do in the gap (2005-2010) what subjects did you study in management tell me something about ur project what are ur recommendations what is tqm what is quality circle what is 360 degree appraisal what are mummies in india do they mummify some teachings of swami vivekanada u did management then y look out to work with bank what is warli painting… (something about my hobbies)\ some questions about my state – who is ruling party in kerala, how many mps are in kerala, who is the chief minister? How many members in lok sabha a rajya sabha? How many members are nominated by president in RS? What is sin 20, sin 60, sin90? What is a set What is null set What is disjoint set?
Has anyone any idea about when will be the UCO Bank PROBATIONARY OFFICERS (PO) interview when exam help ON 30 Jan 2011. anyone got call letters or email ?
if anybody has any idea regarding pnb it officer banking domain interview please share.their criteria was graduation +1yr experience in finacle.it is very difficult to guess.also a total of 1585 names are shortlisted for just 227 posts.if anybody has any information regarding increase in no of vaccancies please inform me @ suswjj@yahoo.co.in
Hi, I'm working in vellore(tamilnadu) as postal assistant, I'm going to get married to a person who is in hosur(tamilnadu), Will I get marital transfer to that place? If yes, How much time will it take to get transfer from the date of applying? Kindly answer..
please mail me the frequent questions asked at the time of den bank interview.
ANYBODY has any idea, When would the LIC housing Finance assistant interview result be declared..the interviews were in February, but there is no update on the website.
please contribute all those who are appearing for idbi assistant manger interview............will b helpful for all of us
Hi All If any one of you wanna banking related interview preparation then contact me on pksingh1512@gmail.com. Currently i am located in Navi Mumbai-Vashi
