INDIAN BANKING SECTOR:
GROWTH AND DETERMINANTS
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In recent era, Banking system is one of the many institutions that impinge on any economy and affects its performance. The contribution of banking system to the economic development depends upon the governing policy. Banks are considered to be one of the most important of all the financial intermediaries in the financial system of the country. Banks have been playing a crucial and pivotal role in financial system of developed countries and most of the emerging economies. In the developing countries, even banks are not only playing an important role in economic development, but banks help to ma...
In recent era, Banking system is one of the many institutions that impinge on any economy and affects its performance. The contribution of banking system to the economic development depends upon the governing policy. Banks are considered to be one of the most important of all the financial intermediaries in the financial system of the country. Banks have been playing a crucial and pivotal role in financial system of developed countries and most of the emerging economies. In the developing countries, even banks are not only playing an important role in economic development, but banks help to maintain the financial stability of India. In India, banking sector performs three primary functions: the operation of the payment system, the mobilization of savings and the allocation of savings to investment projects. By allocating capital to the highest value use while limiting the risks and costs involved, the banking sector can exert a positive influence on the overall economy, and is thus of broad macroeconomic importance. To study about growth trends in banking sector is vital these days to promote economic growth, so, is done in this book.
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