Economics
development is a permanent process to develop the capital of the country in
audit to achieve the full employment level and improve the economic life of the
people. To exploit the resources capital and technology are a must for
that. Bank play vital role in providing capital to the economy. Bank is
the only institution which provides capital and solves the problems.
The
bank mobilizes idle savings of the people. It pools them for investment in
different sector and regions. It helps in the creation of capital. If the
supply of money equals the demand for it, the country does not depend upon the
foreign sources. The bank gives credits to the entire sector. It provides
capital to agricultural. The farmer buys input (seeds, fertilizers). He uses
the bank credit to reclaim the land. He purchases machinery to increase land
produce.
The
bank promotes internal and external trade. It opens the letter of credit for
external trade. It discounts the promissory note and bill of exchange. It makes
the payment easy in all types of trade.
The
bank promotes investment function in all economic activity. It under writes the
share of new joint stock company. It also makes investment in the share,
security, bond, and debenture. Banks plays an important role in the expanding
the supply of money by creating credit, according to the needs of the country.
The expansion and contraction of credit help the economy to enough for economic
development. It also remits money and capital from one place to another place
through draft and T.T.O’s. thus bank has a vital role play in the economic
development of any country. In the develop country it improves and promotes
economics welfare when under develop country it develops the formation for
economic prosperity.
