Overview

Banking is an important part of any modern economy, as it is essential for stimulating economic growth, channelizing financial flows, assisting the payment system, and implementing monetary policy effectively. Banks are the most important financial intermediaries in the financial system of an economy, and are as important to the economy as heart is to a human body. Banks mobilise savings by accepting deposits from the people, create credit by lending money to their customers and to other banks, provide loans to businessmen, purchase government securities, and provide merchant banking services to businessmen. Banks also provide customers with safe deposit vaults and provide security to their valued possessions. Banks have become a 'one stop shop' and provide customers with various investment opportunities under the same roof, viz.capital markets, government securities, insurance, etc. In view of Friedman and Schwartz (1963), banking panics caused contractions in the money supply which caused slowdown in economic activities and eventually results in a financial crisis. In another school of thought, banking panics are not a financial crisis but a pseudo-financial crisis

Full Product Details

9781805256335

Table of Contents

Reviews

Author Information

Tab Content 6

Customer Reviews

Recent Reviews

Countries Available