Essay on Fantasies and Realities in Red Badge Of Courage

Fantasies and Realities in The Red Badge Of Courage In The Red Badge of Courage by Stephen Crane the main character, Henry Fleming, thought he understood the war between the North and the South. However, his understanding came â€Å"from his knowledge of fairy tales and mythology†(Gibson 21). Henry thought that he was like the heroes that he read about in these stories. He soon learned that real war was very different from his imaginative expectations. Crane took Henry’s fantasies and contrasted them with the realities of the war to develop this main character into a mature person. Henry spent his early life on a farm in Virginia. Henry’s perception of the world was shaped almost entirely by the books his†¦show more content†¦He tried to measure himself by the heroes in his dreams, but he was unable to sense any assurance in them. He became homesick, lonely, and unhappy because of his constant worries about whether he would be brave in battle. He finally concluded that he would not know the answer until he actually was in a battle. Now he became eager to fight so that he could prove his courage. Much later after Henry received his wound, he returned to his company â€Å"and is greeted as a hero†¦ he thinks himself ‘a man of experience†¦Ã¢â‚¬â„¢ chosen by the gods and doomed to greatness’†(Walcut). He could not wait until he returned home to be greeted by circles of adoring women. Early in the war, rumors and speculations were rampant. Henry and the other soldiers were happy and confident as they looked forward to their first real skirmish. Henry’s early war experiences were that of setting up camp and marching from one place to another. Early in the war Henry felt that he was better able to understand what was going on in battle than the general and his staff of officers, who were experienced and who had access to information concerning the battle which he did not have. Henry was not aware of how inexperienced he really was and how limited his viewpoints were. â€Å"In Henry’s ‘battle sleep,’ he is heroic. Henry is willing to die, follows and leads in turn toShow MoreRelatedRomanticism and Modernism as Strange Bedfellows: A Fresh Look at Jack Kerouacs On the Road12240 Words   |  49 Pagessubjects are used to illustrate this—Dean Moriarty the romantic and alienated hero, the West as romantic idyll-cum- land of disillusionment, and Mexico, the last frontier of pure sky, sunshine and the spirit of the indigenous people countered with the reality of â€Å"alleys . . . with open sewersâ€Å"(300). The first subject is the protagonist, Dean Moriarty, a free-wheeling poster child of romantic heroism. Dean is the driving force out of the west, manned with a car he drives at amazing speeds, yetRead More65 Successful Harvard Business School Application Essays 2nd Edition 147256 Words   |  190 PagesGRIFFIN NEW YORK 65 SUCCESSFUL HARVARD BUSINESS SCHOOL APPLICATION ESSAYS, SECOND EDITION. Copyright  © 2009 byThe Harbus News Corporation. All rights reserved. Printed in the United States of America. For-information, address St. Martins Press, 175 Fifth Avenue, New York, N.Y. 10010. www.stmartins.com Library of Congress Cataloging...in..Publication Data 65 successful Harvard Business -School application essays : with analysis by the staff of The Harbus, the Harvard Business School newspaperRead MoreRastafarian79520 Words   |  319 Pagesprimary data on the movement but to analyze and re-analyze the growing body of scholarly and popular literature on the movement, including sociological and anthropological studies, biographies, monographs, dissertations, published and unpublished essays, and periodical articles. Archival sources, such as newspaper reports, policy statements, pamphlets, and organization manuals have also provided useful information. Chapter 1 reviews and reï ¬ nes Webers theory of charisma and routinization, usingRead MoreANALIZ TEXT INTERPRETATION AND ANALYSIS28843 Words   |  116 Pagesinconsequential small talk we expect at a cocktail party; it tells us relatively little about the personality of the speaker, except, perhaps, whether he or she is at ease in social situations. Some light fiction reproduces dialogue as might occur in reality, but the best authors trim everything that is inconsequential. What remains is weighty and substantial and carries with it the force of the speaker’s attitudes, values and beliefs. We pay attention to such talk because it is interesting, and if weRead MoreFundamentals of Hrm263904 Words   |  1056 Pagesof their group. Thus, a strongly individualistic U.S. employee may not work well if sent to a Pacific Rim country where collectivism dominates. Accordingly, flexibility and adaptability are key components for employees going abroad. To make this a reality, human resource managers must have a thorough understanding of the culture of the areas around the globe to which they send employees. HRM must also develop mechanisms that will help multicultural individuals work together. As background, language

Bcom/275 Week Four Individual Assignment Essay - 796 Words

Week Four Individual Assignment To: The Family of the Trapped Mines It is with great regret, and deepest sorrow that I announce to you today, August 5, 2010, the collapsing of our Copper mine in Copiapà ³ trapping our family members far below the surface. At this moment we are not aware of their fate, or location, and we are making every effort possible to rescue your loved ones, and bring them back safely. We have contacted our Mining Minister Laurence Golborne to assist us with the rescue efforts. President Sebastian Pinera is also aware of this tragic accident. Our rescue workers’ current main objective is to locate your loved ones as quickly as possible, and determine how many may be critically injured. We intend to drill five†¦show more content†¦We are not in a position to estimate how long it may be before we can remove our family members from harm but believe no stone will be left unturned until we bring everyone last one home safely. To: Employees of Compania Minera San Esteban Primera To employees of Compania Minera San Esteban Primera, we have suffered a terrible accident today August 05, 2010. Thirty-three of our fellow employees have been trapped as a result of collapse of our mining tunnel. We do not yet know the fate of our dearest co-workers but we have begun the emergency rescue process. First, our rescue workers’ current main objective is to locate our employee as quickly as possible, and determine how many may be critically injured. We intend to drill five inch bore-holes in diameter to help find their location. After we locate them we will make an attempt to provide food, water, and medical supplies to help sustain their health. To understand better the circumstances your co-workers are in we will provide you consistent update, and further discussions will take place via e-mail, emergency phone lines, and text message. Please understand that all of our efforts, and resources must be concentrated in the rescue efforts. I expect serious concerns, a wide array of emotions, and tempered anger at the result of these events. I urge everyone to remain calm, and steadfast. As the owner of Compania Minera San Esteban Primera, I take full responsibility for the events of today.Show MoreRelatedBCOM 275 All Class Assignments and DQs – A Graded Material Essa y703 Words   |  3 PagesBCOM 275 All Class Assignments and DQs – A Graded Material http://homeworklance.com/downloads/bcom-275-complete-course-business-comm-critical-thinking-amaterial/ BCOM 275 All Class Assignments and DQs – A Graded Material BCOM 275 Week 1 Individual Exercise 1.1 Complete exercise 1.1 from Ch. 1 of Communicating in the Workplace. Choose two misunderstandings you experienced and fill out the chart for these. Respond to questions 1 and 2 shown under the chart for each example of a misunderstandingRead MoreBCOM 275 Complete Class1327 Words   |  6 Pagesï » ¿BCOM 275 Complete Class   Ã‚  Ã‚   Check this A+ tutorial guideline at http://www.assignmentcloud.com/BCOM-275/BCOM-275-Complete-Class. For more classes visit http://www.assignmentcloud.com BCOM 275 Week 1 DQ 1 What are some ways in which receivers of messages provide feedback when listening or reading a message? What effect does this have on the message?   Ã‚  Ã‚   Check this A+ tutorial guideline at http://www.assignmentcloud.com/BCOM-275/BCOM-275-Week-1-DQ-1Read MoreTerm Essay2794 Words   |  12 PagesSyllabus BCOM/275 Version 2 1 Syllabus School of Business BCOM/275 Version 2 Business Communication and Critical Thinking Copyright  © 2011 by University of Phoenix. All rights reserved. Instructor: Jon Olson 12/18/2012 – 02/04/2013 Course Description This course introduces students to the foundations of communication in a business setting. Students will develop skills in critical thinking and decision making through the forms of written communication, including memos, emails, businessRead MoreAnz Bank142091 Words   |  569 Pages271 7,117 6,310 6,492 15.8% 15.4% 0.97% 2.13% 142,064 15.0% 15.3% 0.93% 2.22% 132,347 43.7% 1.17% 44.7% 1.17% 44.6% 1.22% 44.9% 1.22% Individual credit impairment charge ($m) Collective credit impairment charge/(release) ($m) 1,141 (155) 1,158 30 Total credit impairment charge ($m) Individual credit impairment charge as a % of average net loans and advances Total credit impairment charge as a % of average net loans and advances 986 0.22% 0.19% 1

Role of Commercial Banks in Development Free Essays

string(327) " commercial banking system include removal of procedural and transactional bottlenecks including elimination of Service Area Approach, reducing margins, redefining overdues to coincide with crop cycles, new debt restructuring policies, one time settlement and relief measures for farmers indebted to non-institutional sources\." Role of commercial banks in development. INTRODUCTION A commercial bank is something with which every one of us is well known. However different bankers and economists have defined it in a different way:   According to Kent: â€Å"An organization whose principal operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to others for expenditure. We will write a custom essay sample on Role of Commercial Banks in Development or any similar topic only for you Order Now † According to Banking Companies Ordinance 1962: Banking means the accepting for the purpose of lending or investing of deposits of money from the public repayable in demand or otherwise and withdraw-able by cheque, draft order or otherwise. † Various economists have different views about the role of commercial banks in economic development. Schumpeter says,  Ã¢â‚¬Å"It is the banking system which serves as a key agent along with the entrepreneur in the process of economic development†. According to  Prof. Cameron  in his â€Å"Banking and Economic Development†, â€Å"a banking system may make a positive contribution to economic growth and development. Evolution of Commercial Banks The foundation for building a broad base of agricultural credit structure was laid by the Report of the All-India Rural Credit Survey (AIRCS) of 1954. The provision of cultivator credit in 1951-52 was less than 1% for commercial banks. In the report it was observed that agri cultural credit fell short of the right quantity, was not of the right type, did not fit the right purpose and often failed to go to the right people. With a view to give an impetus to commercial banks, particularly, in the sphere of investment credit, the nationalization of the Imperial Bank of India and its re-designation as the State Bank of India (SBI) was recommended. Growth in Outreach 1951-91 From the position prevalent in 1951-52, commercial banks came a long way with a substantial spread of 32,224 branches in rural and semi-urban areas comprising 68% of their total outlets as on 31 March 1991. The outstanding deposits of such branches at Rs. 7,855 crores as on the same date constituted around 35% of their total deposits, while loans outstanding at Rs. 43,797 crore comprised 36% of outstanding credit. The agricultural advances of the commercial banking system aggregated Rs. 16,687 crore and constituted 14% of total advances in March 1991. The rural and semi-urban branches of commercial banks covered 17. 6 crore deposit accounts while the number of loan accounts serviced aggregated 3. 7 crore. Growth during 1991-92 to 2003-0 4 The period since 1991-92 has seen a fairly rapid expansion of credit to agriculture. Available data indicate that the flow of credit to agriculture by commercial banks and RRBs taken together increased to Rs. 60,022 crore in 2003-04. This implies a compounded annual growth rate of 22. 2%. In fact, as compared with commercial banks (including RRBs), the flow of credit from the cooperative sector was much slower through this period. The compounded annual growth rate of credit for agriculture from cooperative institutions was only 13. 7%. Further, the proportion of agriculture credit to total credit came down because of the rapid growth in non agriculture credit. The Government took some major initiatives during the period to boost agriculture production and productivity through enhanced credit flow and by way of building agricultural infrastructure, particularly irrigation and connectivity in rural areas. Special Agricultural Credit Plan (SACP) was introduced by RBI for Public Sector Commercial Banks in 1994-95. Credit growth for agriculture and allied sectors under this caption reflected a CAGR of 36. 45% during 2001-02 to 2005-06. SACP has since been extended to Private Sector Commercial Banks from 2005-06. The SHG – Bank Linkage Programme was started as a pilot project by NABARD in 1992. It led to the evolution of a set of RBI approved guidelines to banks to enable SHGs to transact with banks. Initially there was slow progress in the programme up to 1999 as only 32,995 groups were credit linked during the period 1992 to 1999. Since then the programme has been growing rapidly and the cumulative number of SHGs financed increased from 4. 61 lakhs on 31 March 2002 to 10. 73 lakhs on 31 March 2004 and further to 29. 25 lakh groups as on 31 March 2007. Rural Infrastructure Development Fund (RIDF) was set-up in NABARD by GoI during 1995-96 with an initial corpus of Rs. 2000 crore, to accelerate the 47 completion of on-going projects of rural infrastructure. Banks which did not fulfill the priority sector credit requirement and agriculture credit mandate were required to contribute to this Fund. The fund has been strengthened every year with additional allocations in the Union Budget. A large number of irrigation and rural connectivity projects could get completed under RIDF. RBI scaled down its contribution to the Rural Credit funds with NABARD to a token amount of Rs. crore per annum since 1993-94. However to enable NABARD to have reasonably strong leverage for accessing market funds, the share capital of NABARD was strengthened and increased to Rs. 2000 crore (paid up) from Rs. 100 crore at the time of its formation in 1982. Contributions to enhanced share capital have come from GoI and RBI. By prudent funds management, the instit ution has also built a strong base of reserves and has been using it in its business operations judiciously to keep lending rates to rural financial institutions at significantly lower than market costs. Developments – Post 2003-04 Since 2003-04, there has been a substantial increase in the flow of credit to agriculture through commercial banks. Disbursements have increased from Rs. 52,441 crore in 2003-04 to Rs. 1,16,447 crore in 2005-06, reaching an annual growth of 43% each year. As envisaged in the GoI’s strategy for â€Å"doubling of credit†, 95 lakh new farmers have been brought under the institutional fold and 1,383 agri-clinics opened. Commercial banks have also played a major role in the promotion of the SHG – bank linkage movement with more than 11. 88 lakh groups being linked to banks for provision of credit. Reforms in the commercial banking system include removal of procedural and transactional bottlenecks including elimination of Service Area Approach, reducing margins, redefining overdues to coincide with crop cycles, new debt restructuring policies, one time settlement and relief measures for farmers indebted to non-institutional sources. You read "Role of Commercial Banks in Development" in category "Papers" Banks play a vital role in the economic development of a country. They accumulate the idle savings of the people and make them available for investment. They also create new demand deposits in the process of granting loans and purchasing investment ecurities. They facilitate trade both inside and outside the country by accepting and discounting of bills of exchange. Banks also increase the mobility of capital. They provide a variety of facilities for remitting a large amount of money from one place to another by the transfer of a mere slip of paper. Commercial banks play an impo rtant and active role in the economic development of a country, if the banking system in a country is effective, efficient and disciplined; it brings about a rapid growth in the various sectors of the economy. The Functions of Commercial Banks In the modern world, banks perform such a variety of functions that it is not possible to make an all-inclusive list of their functions and services. However, some basic functions performed by the banks are discussed below. 1. Accepting  Deposits The first important function of a bank is to accept deposits from those who can save but cannot profitably utilize this saving themselves. People consider it more rational to deposit their savings in a bank because by doing so they, on the one hand, earn interest, and on the other, avoid the danger of theft. To attract savings from all sorts of individuals, the banks maintain different types of accounts: (i) Fixed Deposit Account: Money in these accounts is deposited for fixed period of time (say one, two, or five years) and cannot be withdrawn before the expiry of that period. The rate of interest on this account is higher than that on other types of deposits. The longer the period, the higher will be the rate of interest. Fixed deposits arc also called time deposits or time liabilities. (ii) Current Deposit Account: These accounts are generally maintained by the traders and businessmen who have to make a number of payments every day. Money from these accounts can be withdrawn in as many times and in as much amount as desired by the depositors. Normally, no interest is paid on these accounts; rather, the depositors have to pay certain incidental charges to the bank for the services rendered by it. Current deposits are also called demand deposits or demand liabilities. (iii) Saving Deposit Account: The aim of these accounts is to encourage and mobilise small savings of the public. Certain restrictions are imposed on the depositors regarding the number of withdrawals and the amount to be withdrawn in a given period. Cheque facility is provided to the depositors. Rate of interest paid on these deposits is low as compared to that on fixed deposits. (iv) Recurring Deposit Account: The purpose of these accounts is to encourage regular savings by the public, particularly by the fixed income group. Generally money in these accounts is deposited in monthly installments for a fixed period and is repaid to the depositors along with interest on maturity. The rate of interest on these deposits is nearly the same 3s on fixed deposits. (v) Home Safe Account: Home safe account is another scheme aiming at promoting saving habits among the people. Under this scheme, a safe is supplied to the depositor to keep it at home and to put his small savings in it. Periodically, the safe is taken to the bank where the amount of safe is credited to his account. 2. Advancing  of loans The second important function of a bank is advancing of loans to the public. After keeping certain cash reserves, the banks lend their deposits to the needy borrowers. Before advancing loans, the banks satisfy themselves about the credits worthness of the borrowers. Various types of loans granted by the banks are discussed below: (i) Money at Call: Such loans are very short period loans and can be called back by the bank at a very short notice of say one day to fourteen days. These loans are generally made to other banks or financial institutions. (ii)  Cash Credit: It is a type of loan, which is given to the borrower against his current assets, such as shares, stocks, bonds, etc. Such loans are not based on personal security. The bank opens the account in the name of the borrowers and allows him to withdraw borrowed money from time to time up to a certain limit as determined by the value of his current assets. Interest is charged only on the amount actually withdrawn from the account. (iii) Overdraft: Sometimes, the bank provides overdraft facilities to its customers though which they are allowed to withdraw more than their deposits. Interest is charged from the customers on the overdrawn amount. (iv) Discounting of Bills of Exchange: This is another popular type of lending by the modern banks. Through this method, a holder of a bill of exchange can get it discounted by the bank. In a bill of exchange, the debtor accepts the bill drawn upon him by the creditor  (i. e,  holder of the bill) and agrees to pay the amount mentioned on maturity. After making some marginal deductions (in the form of commission), the bank pays the value of the bill to the holder. When the bill of exchange matures, the bank gets its payment from the party, which had accepted the bill. Thus, such a loan is self-liquidating. (v)  Term Loans: The banks have also started advancing medium-term and long-term loans. The maturity period for such loans is more than one year. The amount sanctioned is either paid or credited to the account of the borrower. The interest is charged on the entire amount of the loan and the loan is repaid either on maturity or in installments. . Credit Creation A unique function of the bank is to create credit. In fact, credit creation is the natural outcome of the process of advancing loan as adopted by the banks. When a bank advances a loan to its customer, it does not lend cash but opens an account in the borrower’s name and credits the amount of loan to this account. Thus, whenever a bank grants a loan, it create s an equal amount of bank deposit. Creation of such deposits is called credit creation which results in a net increase in the money stock of the economy. Banks have the ability to create credit many times more than their deposits and this ability of multiple credit creation depends upon the cash-reserve ratio of the banks. 4. Promoting Cheque System: Banks also render a very useful medium of exchange in the form of cheques. Through a cheque, the depositor directs the bankers to make payment to the payee. Cheque is the most developed credit instrument in the money market. In the modern business transactions, cheques have become much more convenient method of settling debts than the use of cash. 5. Agency Functions: Banks also perform certain agency functions for and on behalf of their customers: (i) Remittance of Funds: Banks help their customers in transferring funds from one place to another through cheques, drafts, etc. (ii) Collection and Payment of Credit Instruments: Banks collect and pay various credit instruments like cheques, bills of exchange, promissory notes, etc. (iii) Execution of Standing Orders: Banks execute the standing instructions of their customers for making various periodic payments. They pay subscriptions, rents, insurance premium, etc. on behalf of their customers. (iv) Purchasing and Sale of Securities: Banks undertake purchase and sale of various securities like shares, stocks, bonds, debentures etc. on behalf of their customers. Banks neither give any advice to their customers regarding these investments nor levy any charge on them for their service, but simply perform the function of a broker. (v) Collection of Dividends on Shares: Banks collect dividends, interest on shares and debentures of their customers. (vi) Income Tax Consultancy: Banks may also employ income-tax experts lo prepare income-tax returns for their customers and to help them to get refund of income-tax. (vii) Acting as Trustee and Executor: Banks preserve the wills of their customers and execute them after their death. (viii) Acting as Representative and Correspondent: Sometimes the banks act as representatives and correspondents of their customers. They get passports, travelers tickets, book vehicles, plots for their customers and receive letters on their behalf. 6. General Utility Function: In addition to agency services, the modern banks provide many general utility services as given below: (i) Locker Facility: Banks provide locker facility to their customers. The customers can keep their valuables and important documents in these lockers for safe custody. ii) Traveller’s Cheques: Banks issue traveller’s cheques to help their customers lo travel without the fear of theft or loss of money. With this facility, the customers need not take the risk of carrying cash with them during their travels. (iii) Letter of Credit: Letters of credit are issued by the banks to their customers certifying their creditwort hiness. Letters of credit are very useful in foreign trade. (iv) Collection of Statistics: Banks collect statistics giving important information relating to industry, trade and commerce, money and banking. They also publish journals and bulletins containing research articles on economic and financial matters. (v) Underwriting Securities: Banks underwrite the securities issued by the government, public or private bodies. Because of its full faith in banks, the public will not hesitate in buying securities carrying the signatures of a bank. (vi) Gift Cheques: Some banks issue cheques of various denominations (say of Rs. 11, 21, 31, 51. 101, etc. ) to be used on auspicious occasions. (vii) Acting as Referee: Banks may be referred for seeking information regarding the financial position, business reputation and respectability of their customers. viii) Foreign Exchange Business: Banks also deal in the business of foreign currencies. Again, they may finance foreign trade by discounting foreign bills of exchange. Role of Commercial Banks In Economic Development Of A Country Commercial banks  play an important and active role in the economic development of a country. If the banking system in a country is effective’, efficient and disciplined, it brings about a rapid growth in the various sectors of the economy. The economic significance of commercial banks is given in brief. (1) Banks promote capital formation. The commercial banks play an important role in rising of the financial resources. They encourage savings by giving various types of incentives to the savers. They expand branches of the banks in rural and urban areas and mobilize savings even at far of places. These savings are then made available to the businesses which make use of them for productive purposes in the country. The banks are, therefore, not only store houses of the country’s wealth, but also provide stream of resources necessary for economic development. (2) Investment in new enterprises. Businessmen normally hesitate to invest their money in risky enterprises. The commercial banks generally provide short and medium term loans to entrepreneurs to invest in new enterprises and adopt new methods of production. The provision of timely credit increases the productive capacity of the economy. (3) Promotion of trade and industry. With the growth of commercial banking in the 19th and 20th centuries, there is vast expansion in trade and industry. The use of bank draft, cheque, bill of exchange credit cards etc has revolutionized both national and international trade. (4) Development of agriculture. The commercial banks, particularly in developing countries, are now providing credit for the development of agriculture and small scale industries in rural areas. The provision of credit to agriculture sector has greatly helped in raising agricultural productivity and income of the farmers. This has led to increased demand for industrial goods and expansion of industry. (5) Balanced development of different regions. The commercial banks play an important role in achieving balanced in different regions of the country. They help in transferring surplus capital from developed regions to the less developing regions. The traders, industrialists etc of less developed regions are able to get adequate capital for meeting their business needs. This, in turn, increases investment, trade and production in the economy. (6) Influencing economy activity. The banks can also influence the economic activity of the country through its influence on (a) availability of credit and (b) the rate of interest. If the commercial banks are able to increase the amount of money in circulation through credit creation or by lowering the rate of interest, it directly affects economic development. A low rate of interest can encourage investment. The credit creation activity can raise aggregate demand which leads to more production in the economy. Which finally increases the growth of the nation. (7) Implementation of monetary policy. The central bank of the country controls and regulates volume of credit through the active cooperation of the banking system in the country. If helps in bringing price stability and promotes economic growth within shortest possible period to time. (8) Monetization of the economy. The commercial banks by opening branches in the rural and backward areas are reducing the exchange of goods through barter. The use of money has now greatly increased the volume of production of goods. The non-monetized sector (barter economy) is now being converted into monetized sector with the help  of commercial banks. (9) Export promotion cells. In order to increase the exports of the country, the commercial banks have established export promotion cells. They provide information about general trade and economic conditions both inside and outside the country to its customers. The banks are, therefore, making positive contribution in the process of economic development. Role of banks in 21st century: The commercial banks are now not confined to local banking. They are fast changing into global banking i. e. , understanding the global customer, using latest information technology, competing in the open market with high technology system, changing from domestic banking to investment banking etc. The commercial banks are now considered the nerve centre of all economic development in the country. The use of online banking is now on the increase. It has brought revolution in banking industry. CONCLUSION Commercial banks are considered not merely as dealers in money but also the leaders in economic development. They are not only the store houses of the country’s wealth but also the reservoirs of resources necessary for economic development. They play an important role in the economic development of a country. A well-developed banking system is essential for the economic development of a country. The â€Å"Industrial Revolution† in Europe in the 19th century would not have been possible without a sound system of commercial banking. In case of developing countries like India, the commercial banks are considered to be the backbone of the economy. The Banking Sector has for centuries now formed one of the pillars of economic prosperity. Indeed history provides us with some starting information regarding how banks provided finance for imperialist ventures in newly acquired colonies. Over time banks have formed an important part in providing an avenue for both savings and investments. Land, Labor, capital and entrepreneurs are the basic economic resources available to business. However, to make the use of these resources, a business requires finance to purchase of the land, hire labor, pay for capital goods and pay for individuals with specialized skills. The commercial banks provide capital, technical assistance and other facilities to businessmen according to their need, which leads to development in trade. Commercial banks finance the most important sector of the developing economics i. e. agriculture, short, medium and long-term loans are provided for the purchase of seeds and fertilizer, installation of tube wells, construction of warehouses, purchase of tractor and thresher etc. Commercial banks help in increasing the rate of capital formation in a country. Capital formation means increase in number of production units, technology, plant and machinery. They finance the projects responsible for increasing the rate of capital formation. Commercial banks help the traders of two different countries to undertake business. Letter of credit is issued by the importer’s bank to the exporters to ensure the payment. The banks also arrange foreign exchange. Commercial banks provide the facility of transferring funds from one place to another which leads to the growth of trade. The commercial banks financed the transport sector. It has reduced unemployment on one hand and increased the transport facility on the other hand. Remote areas are linked to main markets through developed transport system. These are the few ways in which the commercial banks had helped in developing the economy of a country. BIBLIOGRAPHY * Samuelson Norhaus, economics, 18th edn, Tata McGraw Hill Publishing Co. Ltd. , 2008 * Xam idea, economics, F K Publication, 2009 * Chitta Ranjan Basu, Commercial Banking in the Planned Economy of India, Mittal Publications, 1991 * N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 * www. preservearticles. com ——————————————– [ 2 ]. N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 3 ]. www. bankingsector. co. in [ 4 ]. N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 5 ]. Xam idea, economics. [ 6 ]. N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 7 ]. www. preservearticles. com [ 8 ]. www. ehow. com [ 9 ]. Samuelson Norhaus, economics, 18th edn, Tata McGraw Hill Publishing Co. Ltd. , 2008 [ 10 ]. Chitta Ranjan Basu, Commercial Banking in the Planned Economy of India [ 11 ]. Samuelson Norhaus, economics, 18th edn, Tata McGraw Hill Publishing Co. Ltd. , 2008 [ 12 ]. www. ehow. com [ 13 ]. N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 14 ]. www. preservearticles. com How to cite Role of Commercial Banks in Development, Papers