Description

BANKS ARE specialised financial institutions which deal in money and its substitutes, and provide a bouquet of financial services. A typical bank accept deposits, give loans, and extract profit from the difference in the interest paid to its depositors and interest charged from its borrowers.1 This process of financial intemediation put banks at a critical pedestal financial order. In their capacity as intermediators, they not only act as the mobilisers of public savings, but also lenders of capital which spurs economic activity and accelerates growth. In other words, banks mobilize deposits from public at large and allocate them into viable investments for high-yielding returns for the savers. The creation of money through money invested not only incentivize public to deposit money in the banks, but also aid in strengthening the fundamental macro- economic system by bringing investment to capital-deficit sectors. Today, banking system is an essential feature of any progressive society,