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What is the role of commercial banks in the economy?

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Question added by Samer Khatib , Economics Moderator , Bayt.com
Date Posted: 2016/11/27
Saad Ahmed Shaikh
by Saad Ahmed Shaikh , Management Trainee , Motilal Oswal Financial Services Ltd

Capital markets, banks and insurance companies are three pillars of an economy. Capital markets & banks help in mobilizing savings from people who have in excess (depositors) towards those who are in need (corporations, individuals). Insurance companies help in offsetting risk.

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