What is indigenous banking system

1.	What is indigenous banking system
Answer» Indigenous bankers are private firms or individuals who operate as banks and as such both receive deposits and give loans. Like banks, they are also financial intermediaries. They should be distinguished h professional moneylenders whose primary business is not banking but money lending.A pure moneylender lends his own funds an indigenous banker raises a part of his loanable funds from the public in deposits or other forms. A moneylender conducts his transactions in cash, while a large pan of die transactions of an indigenous banker are based on dealings in short term credit instru\xadments like hundis and commercial bills.

Discussion