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What economic characteristics are consistent with a commerical bank?

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تم إضافة السؤال من قبل Frank Avitia , Managing Director , AIS Investment Services
تاريخ النشر: 2013/06/27
Muhammad Afaq
من قبل Muhammad Afaq , SENIOR FINANCIAL ACCOUNTANT , United Eddy Company (United Yousef M. Naghi Group)

Dear Frank Avitia, In my opinion, following Characteristics are consistent with commercial banks growth1.
As per business Cycle, when economy turns into expansion towards boom phase from depression.2.
Employment rate increases, means demand for goods increases3.
Increase in demand means expansion in productive activities,4.
Rise in Production Level, needs for more Capital5.
Firms get loan for expansion purpose, for new ventures, etc6.
When earning of the people increases, alternatively savings increases,7.
More saving means more investment or more deposits8.
More deposits leads to more generation of credit9.
Tax Policy, Trade Policy, and monetary Policy10.
Use of technology

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