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Banks do not create any money. It only borrow and lend money from their customers. Banks are very important to economy because if bank have certain amount with them then bank can invest in other sectors. which will help in long term by giving them return. Banks have a certain team to do that.
Wiki User
∙ 14y ago
Wiki User
∙ 14y agoThe 8,700 commercial banks, which are about 98% of all banks in the country, hold the vast majority of demand deposits held by all institutions (banks, thrifts, credit unions). Their non-institutional competition is primarily money-market accounts. As the name implies, commercial banks make the majority of commercial loans, but also make more than 20% of all consumer loans.
Wiki User
∙ 11y agoyes,
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What are the Importants of banks in the economy?
the importants of banks is that if banks dont lend to business and other banks to whole economy starts collapse
How does the economy affect banks?
Commercial banks - NO. National banks - YES.
The importance of community service in the Nigeria economy?
what are the importance of community service to nigeria economy
How banks help expand and maintain the economy?
Banks help expand and maintain the economy by providing loans and credit to businesses.
What happens if banks reduce lending?
It hurts the economy and makes banks lend less which would hurt the economy even more and so on...
What are the importance of national income in the economy?
The importance of national income in the economy is absolutely huge. This determines whether or not there is money that can be spent.
What is importance of IT industry in Indian Economy?
importance or need of information technology
What is the economic importance of the tiger?
economy
Why does government regulate banks?
Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why governments regulate the banks to ensure that customers are protected and the country's economy is safeguarded.
Why do government regulate from banks?
Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why governments regulate the banks to ensure that customers are protected and the country's economy is safeguarded.
The role of banks in the Nigerian's economy?
the role of commercial banking in the development of nigerian economy
Why do governments regulate banks?
Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why governments regulate the banks to ensure that customers are protected and the country's economy is safeguarded.
