Role of Bank Essay with Outline for Bcom, B.A, BSC, Graduation, Class 12, F.A and FSc
Essay on the Role of Bank with Outline is here for the students of B.A, FSC, Bcom, Class 12, F.A and FSC. This is an important essay for the students of Commerce. In this essay, we will discuss the role of the bank and how effective this business is nowadays. Not only the effectiveness of the bank but also we will discuss its functions and facilities provided by it. You can write the same essay under the topic, Essay on Role of Banking or Essay on Importance of Banks. While preparing this essay students will not only read this but will also go through some parts of knowledge related to the bank to become familiar with it. There are some other important essays also available at This Link.
Outline of Essay on Importance of Banks
- Banks have a vital role to play in the economic growth of a country.
- Banks produce a congenial environment for healthy economic progress.
- Banks also provide many services to their customers.
- Banks make essential arrangements for international trade.
- Banks help in foreign trade through the collection of bills.
- Banks are responsible to provide capital for different sectors.
Commercial banks determine the economics of the stability of a country. They fulfill the financial needs of various sectors. In fact, capital is the basis of commerce and industry. A well-established banking system provides funds to all economic sectors including small businessmen, industrialists, contractors, farmers, cultivators, importers, exporters and traders. The banks act as a middleman to make the commercial transaction possible without any delay. At present hundreds of branches are providing banking services to people of the country. In addition to collecting deposits and making advances, banks offer a wide range of services to their customers. Undertaking stock exchange transactions on behalf of their customers is another activity of the commercial banks. They forward the orders of their customers to stock exchange brokers who try to earn a profit for the stock owners. The commercial banks also provide necessary help to the traders busy in international trade. They help the customers doing export and import trade. Banks also collect and negotiate foreign bills which are the most important instruments of payment in international trade. The banks negotiate documents of the foreign exchange bills for their customers. The documentary credit is surely a better method of payment. Such operations are extremely important for the customers involved in foreign trading. Banks provide the facility of purchase and sale of foreign currencies on the spot.
In any country, capital is considered the backbone of the economy. The shortage of capital means underdevelopment. Commercial banks provide a sufficient amount of capital to the various sectors of the economy. Banks move small savings through the country. The utility of banks is more important in a developing country like Pakistan where there is a shortage of capital. Commercial banks provide loans to agriculture, industrialists, traders and businessmen. As a result, they provide an increase in national output, employment and per capita income.
In the recent past, information technology brought a tremendous revolution in the world. It was quite natural that Banks would take advantage from the latest facilities provide through computers. Banks established their network through computers and linked up all the branches with one another. They started providing the facility of online banking. Moreover, the customers are being provided the ATM facility. Now utility bills can be paid through a mechanism provided by banks. Now it has become quite convenient for the customers to benefit themselves from the latest technology. The manual system of maintaining accounts is replaced by the computer system. In short commercial banks play a very important role in the development of the country.