what is the function of the bank in helping the community?

Answer 1

In the greater Economic picuture Banks play the role of Intermediaries. They encourage savings from the Public and channelise it to Industries who need cash to invest in their activities. They function to create money and grow it and regulate credit which is a control point for regulating inflation, or the general price rise in the economy. Banks have grown into other functional areas of consumer credit, mortgage lending and portfolio investments other than their basic functions of channeling savings. Now banks also have Investment Banking divisions which even underwrite securities for corporations needing to raise cash in the equity market. It is through Banks that the Central Bank of a country channellise many of their policies about the economy.