Can You Describe The Role And Importance Of Commercial Bank.

The banks play very important role for the economic development of the country. The importance can be examined as under:
1. Increase in saving: The people deposit there savings into the banks and the bank pays reasonable profit on these savings.

2. Increase in investment: The money which is collected by the bank is lent to businessman and industrialist. The increase in the investment increases the level of employment.
3. Increase in employment: The banks advance loan to the investors. As a result; the industrial units are setup in different parts of the country. Hence the level of employment is increased.

4. Transfer of Money: When the people want to transfer their money from one place to another place, they get traveller cheque and the bank draft from the bank.
5. Loan to Govt.: When the govt. needs funds to complete the public works programs, the banks provide loans to it.

6. Capital formation: the process of the capital formation is completed with the financial of commercial banks. So banks increase capital formation.
7. Balanced development: when the banks provide loans to the less developed areas, the chances of progress and development are increased in the areas.
8. Saving in metals when the payments are made through currency notes and credit instruments, the precious metals are saved.
9. Conclusion: banks are back bone for the economic development of any country. A planned banking system is indispensable for economic growth and development of the country.

A commercial bank can be found in all countries on this planet and provides services that range a lot. The services provided by banks are so many that it is hard to think a life with out them.

A bank was established at the first place for the purpose of keeping people's money and earning profits on that money by lending them to the needy ones. Since its establishment though, the bank has kept this service but has added dozen more services.

Commercial Banks today provide its users with services of car financing which is another form of a loan; however a user is given more luxury on spending. From the time visa cards have been introduced, the commercial banking has evolved into a totally new industry.

Providing and giving people the power to spend and pay the banks back when they are viable to do. This not only helps the increase in purchasing power but it increases the economy of the country on the whole. With ATM machines all over the place, it is not necessary for people of today to take the risk of carrying money and thus has started the culture of plastic money.

In some countries, commercial banks provide the services of paying utility bills which adds to the convenience that banking sector provides. As technology increases, banks have also enhanced their technique of providing more services, with internet banking being the latest. The role and importance of banks is unquestionable in the world today and it is unthinkable to have a world without them.

Commercial banks being a very important and essential part of the economy of country are proved to be like a part of body. Without commercial banks a country is like a body without blood.There few important points are given below:
Capital formation: Commercial bank by the process of getting deposits and lending them accumulate the capital and in this way capital is formed.