Role of Commercial Banks in the Economic Development of a Country: Commercial banks are one of the three primary agents which help circulating funds in the market. Commercial banks provide loans and corporate bonds to the households‚ new start ups and small medium enterprises to run their businesses. It also obtains money from the households and invests that money to other profitable investments. The money held as customer account then accrues interest which is given to the customer in the form
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Role of Commercial Banks in Economic Development According to Kent: “An organization whose principal operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to others for expenditure.” Various economists have different views about the role of commercial banks in economic development. Schumpeter says‚ “It is the banking system which serves as a key agent along with the entrepreneur in the process of economic development”
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INTRODUCTION:- Every country needs the services of financial institutions for accelerating the pace of development. Commercial banks have played a critical role in the economic development of a country. Now a day’s commercial banks are important not just from the point of view of economic growth‚ but also financial stability. In emerging economies‚ commercial banks are special for three important reasons. First‚ they take a leading role in developing other financial intermediaries
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Role of commercial banks in development. INTRODUCTION A commercial bank is something with which every one of us is well known. However different bankers and economists have defined it in a different way: According to Kent: “An organization whose principal operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to others for expenditure.” According to Banking Companies Ordinance 1962: “Banking
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Bank: An organization‚ usually a corporation‚ chartered by a state or federal government‚ which does most or all of the following: receives demand deposits and time deposits‚ honors instruments drawn on them‚ and pays interest on them; discounts notes‚ makes loans‚ and invests in securities; collects checks‚drafts‚ and notes; certifies depositor’s checks; and issues drafts and cashier’s checks. Features of Bank: • Money Dealing • Acceptance of Deposit • Grant of loan and advances • Payment
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1/2012 103-111 The Role of Banks in Capital Formation and Economic Growth: The Case of Nigeria Alex Ehimare OMANKHANLEN Covenant University‚ Ota‚ Ogun State‚ NIGERIA alexehimare@yahoo.com Abstract: This study investigates the role of banks in capital formation and economic growth: The case of Nigeria for the period 1980-2009. The economies of all market-oriented nations depend on the efficient operation of complex and delicately balanced systems of money and credit. Banks are an indispensable element
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1 Development Banks: Their role an d importance for development C.P. Chandrasekhar Among the institutions whose role in the develo pment of the less developed regions is well recognised but inadequately emphasised are the development banks. Playing multiple roles‚ these institutions have helped promote‚ nurtu re‚ support and monitor a range of activities‚ though their most important function has been as drivers of industrial development. All underdeveloped countries launching on national
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Introduction: The role of culture in the economic development of countries is often overlooked by economists‚ yet it can significantly affect a country’s economic development. Culture generates assets‚ such as skills‚ products‚ expression‚ and insight that contribute to the social and economic well being of the community. I will show the benefit of culture’s impact on economic development through tourism‚ social capital‚ and corporate governance. In contrast‚ culture can produce negative outcomes
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employees. (Wikipedia‚ the free encyclopedia) A business that is independently owned operated and also well aimed for profit can call as a small business. “At the same time venture growth is the essence of entrepreneurship” In political economics‚ entrepreneurship is a process of identifying and starting a business venture‚ sourcing and organizing the required resources and taking both the risks and rewards associated with the venture. (Wikipedia‚ the free encyclopedia) Entrepreneurship
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1.The Role of entrepreneurship in economic development of a country An entrepreneur can be regarded as a person‚ who has the initiative skill and motivation to set up a business or enterprise of his own and who always looks for high achievements. He is the catalyst for social change and works for the common good. They look for opportunities‚ identify them and seize them mainly for economic gains. An action oriented entrepreneur is a highly calculative individual who is always willing to undertake
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