Are Public Sector Bank Socially Justifiable? a Case on Bangladesh

Are Public Sector Banks Socially Justifiable? unhomogeneous overlapping political and stinting principles have been advanced for human beings sector banks. Politically, public sector banks whitethorn be a response to the substantial economic and political power of coarse private banks. Although private banks are government chartered and regulated, officials may nonetheless consider private banks to be abusing their power. As the U.S. prexy Andrew Jackson said in the speech accompanying his 1832 shun of the rechartering of the (private) Second Bank of the U. S., It is to be regretted that the rich and powerful also often bend the acts of government to their selfish purposes. The major rifle of a monetary system is to strengthen the savings-investment attend to of the country. For the result of economic development, the financial systems mobilize and pool together the financial resources from various surplus units, and ultimately channelize all those resources for productive investments. In addition, the financial system influences the economic development process through supporting an active compensation mechanism. An efficient payment mechanism helps to achieve specialization and economies of scale in merchandise and strengthens the development process of a country.

Because of this widespread relationship amongst economic development and financial sector, it is said that a sound, condition and efficient financial system is a sine qua non for achieving economic growth. The Rationales for Public Sector Banks are: 1. Allocation of assigns to underserved groups, non only long-term industrial creed but credit for small businesses The economic rationale for public sector banks has been the parceling of credits to underserved groups, not only long-term industrial credit but credit for agriculture, small businesses, housing and export finance. This rationale was not necessarily part of the state-directed approach to development, but a response to perceptions of failures in... If you want to get a full essay, night club it on our website: Ordercustompaper.com

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