What are the roles that banks play in infrastructural decay and national development?

Question

what roles do banks play in aiding them?

Answer 1

well, a bank can adjust the money supply then the interest rate, then the economy activities by monetary policies. By doing this, the central bank can stabilised the overall economics in a society.

On the other hand, through the buy and sell of foreign currency, or the adjust of interest rate, it can absorb the foreign investment for infrastructural development etc, ie. borrow the financial strength for its nation's use. So it flexibly arrange the use of resources. When the nation is more developed, and the most the employment is solved, then the people are more capable to return the money to the foreigners. They do this by paying the interest or dividends.

Answer 2

They have given millions of americans loans that they are not able to afford at high interest rates and credit cards, just for there own profit. Alot of these loans can't be paid back due to job loss or even adjusting rates where the person can't keep up. Now there are so many homes being forclosed on, the economy is suffering. This also happened in the 80's you would think our gov would censor banks and not allow them to do this, again, but they don't.