The Role Of Banking Institutions
Banks offer safe storage of valuables and money for institutions, companies, and individuals. Banks help in money transfers from one region to another or country. Credit cards, drafts, and checks are used in the transfer of money from one place to another. Banks have reduced the risks involved with carrying money and valuables through money transfers.
Businesses and people in need of money can approach banks for loans. This encourages entrepreneurship and economic growth. Favorable interest rates encourage borrowing for individuals and companies.Banks enable individuals and companies to engage in the global foreign exchange.
Banks also provide liquidity for businesses and people.
Banks allow their customers to get larger credit for the purchase of goods and services. They also assist in the financial market by buying and selling of securities. Trading in large volumes can only be facilitated by banks.
Individuals and governments can get credit provision from banks when they have a need. In order to complete infrastructure projects in good time, banks give credit provisions to governments. During corporate mergers, banks can act as intermediaries in such meetings.
Banks provide underwriting services to their customers. Credit cards and debit cards help in daily transactions of buying goods and services.Banking institutions mobilize savings for ventures that require capital. Banks are responsible for financing external trade as well as internal trade. Farmers can grow their activities when they borrow from banks and this helps to grow the agricultural industry.
Income generating activities increase in a country when banks finance these activities. In order for the monetary policy of a country to succeed, banks must help in this process. Since there has been growth in the banking industry, banks are located in many parts of the country.
People can access bank services without having to visit banking halls today.With the provision of online banking, banks are now more accessible to people. Banks now offer faster money transfers and services on different products. Those who need advice on financial matters can get consulting services from banks.
Overdraft services offered by banks provide some relief for a while to customers.
The improvement of bank services to customers makes them enjoy a friendlier service.
In case there are any new services offered by banks, they inform their customers through emails and text messages.
Improved customer service is a reason why customers have stayed loyal to banks. It now possible to know what is going on in one’s branch by checking bank social media platforms.