Write down any two roles of banking system in the economic development.

The banking system plays a crucial role in the economic development of a country. Here are two key roles:

1. Facilitating Savings and Investment The banking system collects savings from individuals and businesses through deposits. These funds are then lent out to borrowers for productive investments, such as business expansion, infrastructure development, and agricultural activities. This channeling of savings into investments accelerates economic growth by increasing capital formation.

2. Providing Financial Services and Stability Banks offer essential financial services like payment systems, credit facilities, and foreign exchange transactions. They also ensure financial stability by regulating liquidity, managing risks, and maintaining confidence in the economy. This stability encourages businesses and consumers to engage in economic activities, fostering overall development.