What banks do
Which of the following do banks support in our daily lives?
- Your son who wants to send money to the province
- Companies that want to expand business
- Young family who wants to buy a borey
- Students who want to pass exams
We see banks at many places but do you know what they do everyday?
In economic activities, money is like blood. If the blood flow isn’t smooth, we die. Banks function like our heart to pump in and out blood.
Banks offer you a variety of services but we can summarise as main three roles 1) deposit, 2) credit, and 3) payments
At banks, you can keep your money safe.
Of course you can store your salary in your closet, but what if fire happens?
You do not have to take this risk if you keep your money at a bank. And as a bonus, you can get some additional money called interests.
Secondly, banks use our money to give loans to individuals, companies and governments.
This is an important role because it helps borrowers buy a house, expand businesses, go to university, and so on.
They have to pay back the loans with interests.
Thirdly, banks help you make payments for any kinds including shopping, business, taxes, bank checks and so on. We do not have to carry millions of Riels and we can send money even to somewhere very far.
Why are banks important for our lives?
Imagine one day without banks.
Senders and receivers must find each other every time, no matter how far they live.
If you don’t have enough saving or access to loans, there will be no university, no car, no house, no business expansion.
It is not convenient at all, is it?
Banks support our lives in many ways.