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    BANK Reaction Paper GELACIO, JAN URIEL A.

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    Jan Uriel Oicaleg
    Banks provide important benefits like safely storing money, offering loans, and helping economies grow through credit creation. However, banking can also negatively impact people if they take on too much debt without having the means to repay it. Overall, banking is useful for managing money, but one needs to sufficiently understand how banking works to avoid potential downsides like damaging savings or getting into long-term debt.

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    BANK Reaction Paper GELACIO, JAN URIEL A.

    Uploaded by

    Jan Uriel Oicaleg
    18 views2 pages
    Banks provide important benefits like safely storing money, offering loans, and helping economies grow through credit creation. However, banking can also negatively impact people if they take on too much debt without having the means to repay it. Overall, banking is useful for managing money, but one needs to sufficiently understand how banking works to avoid potential downsides like damaging savings or getting into long-term debt.

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    BANK reaction paper GELACIO, JAN URIEL A.

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    Banks provide important benefits like safely storing money, offering loans, and helping economies grow through credit creation. However, banking can also negatively impact people if they take on too much debt without having the means to repay it. Overall, banking is useful for managing money, but one needs to sufficiently understand how banking works to avoid potential downsides like damaging savings or getting into long-term debt.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views2 pages

    BANK Reaction Paper GELACIO, JAN URIEL A.

    Uploaded by

    Jan Uriel Oicaleg
    Banks provide important benefits like safely storing money, offering loans, and helping economies grow through credit creation. However, banking can also negatively impact people if they take on too much debt without having the means to repay it. Overall, banking is useful for managing money, but one needs to sufficiently understand how banking works to avoid potential downsides like damaging savings or getting into long-term debt.

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    GELACIO, JAN URIEL A.

    BSCE III
    CEP 412

    REACTION PAPER

    Bank is a way where we can borrow and save money. It is a safe way of keeping
    our money. According to Investopedia, a bank is a financial institution licensed to
    receive deposits and make loans. They provide deposit and loan services. It also
    provides credit cards and investing instruments that we can use to grow our money in
    their hands. However, banking also gives positive and negative advantages for people.
    So that, we should also learn how to manage our wealth or using the benefits of using it.

    There are good benefits of banks. It provides safety on our wealth. It helps us to
    save money in addition, by compromising our wealth to the bank, they also can give
    interests annually or semi-annually depending on their offers. Next is that banks do offer
    cheap loans and it also gives opportunity for unprivileged section in society without
    using expensive loan system. Banks also create money with a system called credit
    creation. With the help of credit creation, banks can lend a lot more money than the
    deposits that it holds. When banks lend this money to agriculture, industries, small
    businesses, and service providers, they are helping the economy grow exponentially.
    This, in turn, creates employment and spending power. Overall, this one function of the
    bank is so powerful that the entire economy of any country relies on it. It is also good
    for large scale economy. It is an important benefit for any bank with wide reach through
    branch banking system and benefits of large-scale operations. The wider the bank can
    reach, the better the service it can provide they say. Banks aid rural development
    in more than one way. Firstly, the government makes it mandatory for the banks to lend
    to specialized sectors such as agriculture, rural infrastructure, etc. This leads to the
    development of modern infrastructure and methods in rural areas, thereby bringing in
    growth. Secondly, with the banks opening their branches in the backward areas, the
    GELACIO, JAN URIEL A.
    BSCE III
    CEP 412

    rural population has benefits of modern bank facilities such as check-in accounts, ATM’s,
    locker facility, etc. Many banks operate at the multinational level, this has helped
    people and businesses in a way that

    was not possible before the establishment of modern banks. Multinational banks aids in
    remittance of cash, exchanging one currency for another; aids in export by transferring
    documents and payments; lend money to government, institutions, and other world
    organizations. The reach of the banks is unlimited, and it has helped in making the world
    a global village.

    Aside from the positive benefits of banking, it also has an opposite outcome or
    consequences. It may cause us having a huge debt. Let’s say a person is in the habit of
    maxing out his credit card every month and repays the bare minimum then he will spiral
    into debt very fast. We should have enough capability to afford having loans. Its not
    always borrowing, we should also repay on time. It may damage your savings, or the
    time expectancy of your debt and may cause for us to be in a bad situation.

    Overall, banking is a good way of managing our money. We just need to study
    more about banking. Proper and sufficient knowledge gives a huge advantage when it
    comes to it.

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