Infrastructural decay and national development the role of banks?

Question

Infrastructural decay and national development the role of banks?

Answer 1

The role question is an obsolte perspective. No one has a role cast on them for economic development. Infrastructure development and economic development takes place and the banking business develops as a consequence.. Banks primary role is to raise money through deposits and lend money for viable, productive ventures with adequate safegurd for the safety of the monies involved and with a view the earn net interest money to cover all costs and make profits for the owners/ shareholders of the bank. A ban is therefore supposed to lend where the money will be best utilized and there are very low likelihood of their borrowers defaulting in paying interest and repaying the loans as they become due. Infrastructural projects if appropriately designed can yield good and safe returns to the bank lenders. By financing such infrastructure development projects as also other viable and commercially meaningful economic activities and projects the banks can earn profits and grow their business of banking as well. In the process the banks lending activity is part of the economic development oprocess. There is no role given to any institution to take up for economic development. Nor can such roles be assigned in a meaningful way. Banks should do what their business is in the most efficient manner. Full sto.

The ideas of role of banks are creation of psedu economists, bureacrats and politicians, especially in developing countries and of socialist or communist variety to  fool and exploit the commion people. If economic developments continue banks grow their businesses and as banks grow their businesses economic development process is aided.

Answer 2

Wow, somebody is putting 2 and 2 together. Yes, the banks have invested it seems in everything except this highly necessary thing... and now the expense of fixing the mess is doubled while the available funds are more than halved.

Now this is going to be a hole that keeps getting deeper and deeper, as far as I can see.

Priorities...