Role of Commercial Banks in Everyday Life

Role of Commercial Banks in Everyday Life. 

Banks are the mainstay of the financial system of a country like Bangladesh. Because of close relationship to our everyday life, our government has taken various types of reform programs from time to time making them more effective so that the positive impact of the banking system on our everyday life in economic activities can be more realized.

Role of Commercial Banks in Everyday Life

Banks have played a vital role in our daily life by providing credit for performing economic activities and at the sometime conglomerate the surplus capital from general public through different types of depository incentives.

Agriculture is the major sector of our economy. According to the new GDP measurement system, it provides about 22 percent of our GDP. The recovery of agricultural credit is satisfactory than other sectors and this credit directly affects agricultural production.

Commercial Banks are one of the main means of government by which the government can implement different types of steps for eradicating poverty. Banks motivate the people for savings through various programs and collect the dispersed savings of the people.

Banks provide the rural and small businessmen with loans from deposited money which plays a crucial rule in rural development; specially the micro-credit program is very effective for development of rural sector.

The bank plays a role in capital formation. Banks collect dispersed savings from people through different deposit schemes. Then they distribute loans to the different sectors for starting a productive as well as any other self-sufficient economic activities. They can provide Our unemployment youths with training and loan to start a business or invest in a farm. It also played a crucial rule in sustaining and developing our small and cottage industries.

Banks play a role in mentioning the disadvantaged groups in community under some special programs. Besides these, car loan, house building loan, education loan and in other basic needs banks provide loan which are very effective and essential to our everyday life.

Though banking sector is the life-blood of our financial system the functional area of commercial banks is rather narrow than any other developed countries In spite of some limitations role of bank authorities should undertake more comprehensive programs to develop our life status. But we are not hopeless; rather by taking steps we will reach our ambitious target. Services of the commercial banks will be available to every class and society this day is not so far.

Into influence of 2006 data that had not captured the results of the ongoing institutional reforms, and to the perception of uncertainty and insecurity among the business community sparked by the ongoing anti-corruption crackdown. If this kind of massive drive can be materialize in every sector of Bangladesh, especially to bring institutionalize reform, once upon a day Bangladesh will emerge as a developed welfare country free from hunger & poverty.

Role of Commercial Banks in Everyday Life