What was the role of indigenous banking system in enhancing trade and

1.	What was the role of indigenous banking system in enhancing trade and Commerce? (6)
Answer» A country’s development can be achieved only through economic growth which\xa0is dependent on the prevailing financial system. The role played by the adopted\xa0‘Financial System’ is crucial and it intermediates between the flow of funds\xa0belonging to those who save a part of their income and those who invest in\xa0productive assets. The major function of the financial system is the provision of money\xa0and monetary assets for the production of goods and services.A strong\xa0financial system is crucial to fulfilling the objective of strengthening the real economy\xa0and for its healthy and orderly growth. The financial\xa0system is a complex, well-integrated set of sub-systems of\xa0Financial Institutions, Markets, Instruments, and Services which facilitates the transfer\xa0and allocation of funds, efficiently and effectively. The formal financial the\xa0system consists of four segments or components namely –(1) Financial Institutions, (2) Financial Markets, (3) Financial Instruments and (4) Financial Services.These constitute the financial system and act as a conduit for the transfer of financial resources from net savers to net borrowers i.e. from those who\xa0spend less than they earn to those who earn more than they spent

What was the role of indigenous banking system in enhancing trade and Commerce? (6)