Banking

Banking refers to the industry and activities involving financial institutions that accept deposits from individuals
and businesses, provide loans, and offer various other financial services such as wealth management, currency
exchange, and safe deposit boxes

IMPORTANCE OF BANKING IN THE ECONOMY

Economic Stability: Banks contribute to economic stability by managing the money supply and facilitating
smooth financial transactions. Central banks use tools like interest rate adjustments and reserve requirements to control
inflation and ensure liquidity in the market. This helps maintain confidence in the financial system, preventing
economic crises and promoting sustainable growth.

Facilitation of Payments: Banks facilitate payments by providing efficient and secure methods for transferring money,
such as electronic transfers, credit and debit cards, and online banking services. These payment systems enable smooth
and quick transactions for individuals and businesses, supporting daily commerce and trade.

International Trade: Banks facilitate international trade by providing various services like letters of credit, foreign
exchange, and trade finance. These services ensure that cross-border transactions are conducted efficiently and