why banks are important

All these factors suggest that india's banking sector is set for robust growth.Banks — including investment banks — are not an accident.They lend money on the.Having a savings account that earns interest protects you from inflation and the declining value of money.A bank's most important role may be matching up creditors and borrowers, but banks are also essential to the domestic and international payments system—and they create money.

Main purpose of banks keep money safe for customers offer customers interest on deposits, helping to protect against money losing value against inflation.Offering financial advice and related financial services, such as insurance 1.They run the dominant system for economic payments.The bank must provide cash to the customer whenever funds are withdrawn;Bank accounts are safe your money will be protected from theft and fires.

If not withdrawn, however, banks will typically use the funds as investments or loans to other customers until the depositor makes a withdrawal.For credit balances in bank reconciliation statements, subtract unpresented cheques and add uncredited cheques.Why loans are important in a bank?Has insured the deposits held in u.s.Borrowers receive loans from banks and repay the loans with interest.

They run this system in an efficient manner because they must compete for the users of that system.Banks up to a defined amount (currently $250,000 per depositor per bank).It's an easy way to save moneyIn modern monetary systems, central banks play a crucial role in the dynamics that an economy experiences.Banks will help in providing working capital assistance that becomes the lifeline of companies.