Modern Banking :-
Modern Banking system plays an important role in the economic development of the society. It plays an intermediary role in the development process of the society. Bank accepts saving of mass people of the society as deposit and lend money in various development project of the society.Bank renders various services to the society also.
Capital Formation :-
The primary function of a bank is to collect savings of the mass people scattered throughout the society by opening current savings and fixed deposite accounts.It also facilities the customer to withdraw their money by giving cheque as and when necessary.It makes the people more savings oriented by this process and plays a vital role in capital formation for the society.
Bank accepts deposits and lends surplus money for the development of agriculture commerce and industrial sector of the
nation .our agriculture business and industrial sector requires mainly (1)short term loan to meet up current expenditures
for production and operational expenses and (2) term loan for long term capital investment,ank utilizes idle fund for the
development of the society by accepting deposit and lending money the surplus fund.Banks also invest their-fund into
government treasury bills,shares ,bonds etc.Banks can save the small farmers and small businessman from "Mahajan" non
institutional high rate loans.They participate is agricultural industrial production by package financing and create
employment for the society.
nation .our agriculture business and industrial sector requires mainly (1)short term loan to meet up current expenditures
for production and operational expenses and (2) term loan for long term capital investment,ank utilizes idle fund for the
development of the society by accepting deposit and lending money the surplus fund.Banks also invest their-fund into
government treasury bills,shares ,bonds etc.Banks can save the small farmers and small businessman from "Mahajan" non
institutional high rate loans.They participate is agricultural industrial production by package financing and create
employment for the society.
Other Financial Service :-
Banks render many agency services and advisory services to their customers.Banks receive and pay money.Purchase share
stock.Latter of credit in favor of its customers.Bank acts as a guarantor in favor of its clients and perform all services
for export and import business.It acts as referee and some times adviser for its client and their financial activities.
After nationalization the social responsibility of the bank increased.Economy of Bangladesh is suffering from "Low level
Equilibrium Trap" Decapitate income of our people.is low saving is low and therefore capital formation is also low.But capital
formation is a prime factor for economic development of a society.Development banking facilities will to a great service in
bringing about a better utilization of limited resource.Thus Banks play an important role in the developing process of the
social economy in many ways,by deposit mobilization,by extending,financing,y advisory services and by agency services.
stock.Latter of credit in favor of its customers.Bank acts as a guarantor in favor of its clients and perform all services
for export and import business.It acts as referee and some times adviser for its client and their financial activities.
After nationalization the social responsibility of the bank increased.Economy of Bangladesh is suffering from "Low level
Equilibrium Trap" Decapitate income of our people.is low saving is low and therefore capital formation is also low.But capital
formation is a prime factor for economic development of a society.Development banking facilities will to a great service in
bringing about a better utilization of limited resource.Thus Banks play an important role in the developing process of the
social economy in many ways,by deposit mobilization,by extending,financing,y advisory services and by agency services.