functions and role of banks and other financial institutions

Functions and role of banks and other financial institutions

Bank functions
1. institutions that are the foundation of trust
2. institutions to mobilize funds for economic development
3. intermediaries in the financial sector

The role of banks
1. transfer funds
2. providing ease of transaction
3. liquidity management
4. efficiency of each unit

Function of other financial institutions
1. institution that connects the surplus units and deficit units
2. ready to be mobilized funds from surplus units to deficit units