Influence of Banking Sector in Economic Growth in UK

This report covers the relationship between banking sector and economic growth and success in the UK. It includes a case study of HSBC bank and uses primary and secondary sources to gather appropriate data. The report analyzes the different activities of the banking sector, the role of banking sector on economic growth and development of the UK, and the relationship between banking sector and economic growth. The report also includes a literature review, research methodology, data analysis and interpretation, conclusion, and recommendations.

Influence of banking sector in
economic growth in UK
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Contents
INTRODUCTION ..........................................................................................................................3
Overview of the topic ..................................................................................................................3
Background of the organisation ..................................................................................................3
Research questions.......................................................................................................................4
Research aim................................................................................................................................4
Research objective.......................................................................................................................4
Rationale of the research .............................................................................................................4
Structure of the dissertation ......................................................................................................5
LITERATURE REVIEW ...............................................................................................................6
What are the different activities of banking sector?....................................................................6
What is the role of banking sector on economic growth and development of UK?....................9
What is the relationship of banking sector and economic growth?...........................................11
RESEARCH METHODOLOGY ..................................................................................................12
DATA ANALYSIS AND INTERPRETATION ..........................................................................15
Frequency distribution table......................................................................................................15
Data interpretation.....................................................................................................................17
CONCLUSION..............................................................................................................................34
RECOMMENDATIONS...............................................................................................................35
REFERENCES .............................................................................................................................37
APPENDIX ...................................................................................................................................39
Questionnaire ............................................................................................................................39
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INTRODUCTION
Overview of the topic
Economic growth introduces to an increase within the actual output of products and
services in the nation. Economic development leads to quantitative as well as qualitative changes
within the country. Thus, development reflects progress in the quality of life within a country. In
addition, growth and development of economy are an increase within the production of economic
products and services. Therefore, it is important for each and every country to increase their
economic growth and development. In simpler words, economic growth is defined as increase in
the production of services and goods in an economy (Coccia, 2018). Economic growth
contributes in increasing technology, human capital, labor force and capital goods. Generally,
economic growth is measured in relation to increase in aggregated market value of additional
services and goods produced. Banking sector is a section and an industry of the economy
indulged in holding financial assets of others and investing financial assets as a leveraged way
for creating more wealth. This sector also involves the regulation of banking activities through
government insurance, mortgages, agencies, credit cards and investor services. The present
research is concerned about the relationship between banking sector and economic growth and
success. This report covers activities and operations of HSBC bank operating in the United
Kingdom. For collecting information primary and secondary sources will be used to gather
appropriate data so that defined aim and objectives could be easily attained.
Background of the organisation
The chosen organisation for the current research is HSBC Bank plc. It is known as British
multinational banking and financial services organisation. The international network of HSBC
has over 7500 offices around 80 countries and territories in the Asia-Pacific region, Europe, the
Americas, the Middle East and Africa. This bank is known as one of the major clearing banks
operating in the United Kingdom. It is a wholly owned subsidiary of HSBC holdings. It operates
under industry of finance and insurance (Haralayya and Aithal, 2021). It is founded in 1865 in
HongKong. The headquarters of the company is located in London, United Kingdom and
Birmingham, United Kingdom.
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Research questions
 What are the different activities of banking sector?
 What is the role of banking sector on economic growth and development of UK?
 What is the relationship of banking sector and economic growth?
Research aim
To investigate the influence of banking sector in economic growth and development of
UK country. Case study of HSBC bank.
Research objective
 To analyse different activities of banking sector.
 To identify the role of banking sector on economic growth and development of UK.
 To evaluate determine the relationship of banking sector and economic growth.
Rationale of the research
Main rationale behind doing this research is to identify the roles of banking sector in
improvement of economic growth and development of UK. Along with this, banking sector has
direct effect on economic growth and development by enhancing the entrance to financial
services. This also helps in enhancing efficiency and effectiveness of financial intermediaries. In
2019, the banking sector contributed £132 billion to the United Kingdom economy, 6.9% of total
economic output (Financial services: contribution to the UK economy, 2021). Therefore, with
the help of this research, it is easy for UK government to identify the contribution of banking
sector in economic growth and development.
Significance of the research
The current research holds greater significance because this research has taken out
information about the importance of banking sector in increasing economic growth and
development in the United Kingdom. The report will highlight the various activities of banking
sector that have major contribution in the economic growth and development. It has covered the
data for showcasing the relationship between economic growth and banking sector.
Problem statement of the research
The main problem that is covered in the research is that when activities of the banking
sector is not operated effectively and efficiently it creates problem in the growth and success of
an economy. It shows that there is negative impact on economic growth when different
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operations and activities of bank are not operated efficiently and effectively. Hence, if proper
attention is not given to banking activities of HSBC then it will create negative impact on the
economic development, success and growth.
Structure of the dissertation
This is significant part of the dissertation because it facilitates redder in identifying the
importance of each chapters in research completion. All these chapters are defined as below;
1. Introduction: This is first chapter that includes accurate information about the topic,
includes research aim, objectives and questions, background of the company and many
more.
2. Literature review: This is another chapter that helps researcher in collecting of
secondary data. There are various sources that facilitate in secondary data collection such
as books, articles, journals and many others.
3. Research methodology: This is a significant part of the research because it includes
different types of methodologies (Turnbull, Chugh and Luck, 2021). These types are
deductive approach, quantitative research, positivism philosophy, questionnaire and
many more. These are useful methodologies that turn to impact in attaining research aim
and objectives effectively.
4. Data analysis and interpretation: This chapter is important in evaluating gathered
information through research analytical technique. Within a research, quantitative data
will be gathered from questionnaire and for evaluating this, frequency distribution
analysis is used. This is an effective technique because it not takes maximum time and
cost (WORK, 2020).
5. Conclusion and recommendations: This is a last chapter that includes information
about entire chapters in clear and accurate manner. In recommendations, some
suggestions will be given to the banking sector in improvement of economic growth of
United Kingdom.
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LITERATURE REVIEW
Literature review refers to the process of gathering secondary data from different sources.
These sources are peer-reviewed articles, magazines, books and many more. All these are useful
and valuable sources within a dissertation for achieving research aim and objectives successfully.
Literature review has main purpose within a dissertation is to identify research gap. Within
present study, main gap is the influence of banking sector in economic growth and development
of UK country. In previous studies, there was lots of data available regarding the different
activities of banking sector but there was lack of information about the contribution of banking
sector in improving economic growth and development of UK. This is a main gap and for
addressing this, research questions are used as below;
What are the different activities of banking sector?
According to Kamani (2019), a bank performs variety of operations and this ranges from
primary or basic functions such as daily transactions at branches to others that could be the
agency or general utility services in nature. Banks perform different types of activities and
transactions for supporting their business of banking. These transactions involve accepting or
making payments, clearing, trading and settlement of custody and accounts. Understanding the
operational aspects of banking is very significant to understand the value chain of the banking
industry. There are many significant supporting tasks and activities operated by banking
institutions. The key activities of banking sector are:
Accepting Deposits: Deposits are the primary step of the loan operations as banks are
known as the lenders as well as borrowers of money. As borrowers, banks pay interest to
customers and as lenders, they offer interest and loans to customers. These deposits are
commonly deposited in fixed deposits, current account and savings account. The deposits in
current account could be withdrawn to extent of the balance without prior notice. Savings
accounts encourage savings of individuals. Banks offer interest rate as set by central bank on
customer's deposits. There are certain number of restrictions that on the withdrawal of amount
from these accounts and there are limited number of times to withdraw amount. There are fixed
accounts in banks that are generally known as time deposits. Banks provide high rate of interest
on these accounts in comparison to savings accounts.
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Lending of funds: The second main activity of bank is providing advances and loans to
the customers from amount received on deposits from different customers. The advances could
be made in the form of cash credits, discounting trade bills, overdrafts, consumer credits, term
loans, transport and many miscellaneous advances (GAZI and et. al., 2021). The funds provided
by banks contribute in a great deal to transport, trade, industry and other business operations and
activities.
Online banking: The growth of the e-commerce and internet has changed the banking
sector. Customers have now made great shift from branches to virtual banking. Online banking
has made activities of the very easy and customers could also make transactions while sitting at
their home or offices. Customers with internet on their personal computer or mobile could easily
get connected to the websites of bank and avail variety of banking functions and services.
Internet services has decreased the transaction cost and helped in speeding and easing the flow of
transactions.
Debit and credit cards: Credit cards are generally issued by banks. It is known as another
type of lending and they help banks to grow and also help the economy of a country. Issuing
credit cards is known as profitable type of lending for banking sector. It is being recorded that
credit cards have expanded greatly in the last few years. Banks compete continuously for the
business and provide different types and forms of credit-card accounts. There are many banks
that change rates with consumers and they also offer variety of discounts to the customers as an
incentive for purchasing and using the card. Customers generally use credit cards for buying
products and services on credit. This helps in moving merchandise and manufacturing process
continuously at faster pace in comparison to transactions that take place in cash. There are
certain risks that come up with usage of credit cards and the judicious use of credit cards assist
economy to grow and develop. Debit cards are also offered by banks to their customers but this
card is used as per the amount in the accounts of customers (Csikósová, Čulková and Janošková,
2016).
Overseas banking services: Banks provide financial services like payment accounts and
opportunities of lending to clients of foreign. The foreign clients could be companies and
individuals, although all international banks have their own policies. Most of these banks provide
different products and services for catering the requirements of their international clientele.
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Products of bank in this sector includes savings, mortgages, investments and offshore banking
clubbed with a wide variety of foreign exchange including spot and forwards transactions.
Investment banking: It involves broader range of services and it also includes assessing
investing requirements, evaluating asset structure and the liability-management needs, managing
portfolios of trading in securities, financial assets, currency and commodity, fixed income,
corporate finance, corporate advisory services for acquisitions and mergers and equity and debt
underwriting (Alam and et. al., 2021). Banks also provide services in relation to portfolio-
construction, development of investment policy, cash-flow analysis, portfolio rebalancing,
custody services and philanthropic services. Banks provide trading services provided by dealers
or brokers like selling and buying of debentures and shares on instructions from the client.
Wealth Management: Wealth management services are provided by banking sector. It
includes different financial services and products clubbed with advisory services from different
expert professionals. Wealth management services are offered to an affluent client, secure the
position in financial terms and make most of the amount over the long term. Different investment
avenues can be time deposits, international global trading, dual currency placement, foreign
exchange solutions etc.
Bill Payment Services: Banking sector provide services that are related to payment of
insurance premiums, bill payments, collection of dividends etc. Recurring payments could be
automated for the procedure of payment by using the facilities increased by modern banks.
Account holders could directly pay from their respective accounts or using their credit cards or
debit cards.
Remittance of funds: Banks also help in transferring funds from one place to another,
creating the broader network of branches that are inter-linked to each other. Many banking
instruments are in usage to enable transfer of funds from one account to other like pay orders,
bank drafts, mail or wire transfers. Banks earn nominal commissions by manner of bank charges
on some transfers (Mtar and Belazreg, 2021). Banks issue a draft for the amount at its own
branch that could be credited to other accounts which might be with a different banks or different
branches. Banks gather the amount on behalf of the depositors which is also called the clearing
process.
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What is the role of banking sector on economic growth and development of UK?
According to the Teresienė, Keliuotytė-Staniulėnienė and Kanapickienė (2021), banking
sector is the backbone in the development and growth of economy of any country. Financial
support by banks benefit the economy of the country by increasing the saving or investment
activity or by allocating the resources in most productive way. Banks or other institutional
system helps UK in developing and increasing their economic growth. These are the following
reason in economic growth and development of banking sector in UK:
Deciding the rate of interest: Bank of England is the only bank in UK which is responsible for
deciding the rate of interest that has to be paid in the time of inflation. This is done with the
proper analysis and then the rate is decided. This is done to create an economy which is financial
stable with proper functioning.
Helps in removing deficiency: The UK economic is at developed stage but every
country need to develop their economy in such a way that there is an adequate capital formation.
So any deficiency in the capital formation are been removed by the banking system of the UK.
The countries financial institution helps in mobilising the saving of the community by investing
them in such a way that will be beneficial for both i.e., for country as well as for community
(Chen, Nalluri, Lin and Lin, 2021). As the banking system of UK dispense the savings through
various investment schemes this helps in building of the nation by optimum allocation of
financial assets.
Creating employment opportunity: The hit of Covid pandemic is so hard that most of
the employees of the country losses their job. The employment rate is quite good in UK but not
that much which can help in development and growth of economy. So the banking sector provide
resources in term of financial to the industries of different sector and encourage the people of the
country to start their business which helps in creating more employment. The jobs generated by
the banks of the UK in every financial year is more than that of other. So indirectly they are
growing the economy of the nation.
Providing loans to foreign currency: Foreign currency is a great source in economic
development. The loans granted on foreign currency by various UK banking sector is for setting
new firm or projects. Financial institution and banks also support business to diversify and
expand their market outside the country. They also help in importing of the goods and services
which indirectly increases the economy.
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Balanced development: UK banks like HSBC Holdings, Lloyd Banking Group, Royal
Bank of Scotland Group and Barclays are enhancing their operation worldwide. These banks are
diversifying their activity in different part of the country. They are diversifying in rural and
urban areas. This is done by the banks so that to balance their rural development region and
economic growth (Guping and et. al., 2021). The bank of England plays a vital role in providing
balanced development in the country. This bank uses the financial resources in such a way that
any surplus amount is there in developed city they transfer it to the rural town in the country for
evolve their community. This reallocation of resources by banking sector helps in economic
growth of the UK.
Implements the monetary strategies: Policies and strategy in UK are been made and
planned by the bank of England. The other banking system just implements these policies for the
economic growth. Bank of England depends upon these banks for successful implementation of
these strategies throughout the country. Policies like inflation rate, interest rate, trade practices,
import export duties amount etc., are been made by the head bank.
Boost the saving habits: The commercial banks of the UK try to boost the saving habits
of the citizen by offering various schemes to them. They attract the people by providing high rate
on their saving amount (Zhang and et. al., 2021). Other financial institution rather than
commercial bank also designs different promotional schemes for their consumer so that people
start saving amount instead of spending. They open different types of accounts with various
interest amount. Accounts like saving, commercial, current fixed etc. This role is played by
them so that the amount received by it can be invested in economic development of the country.
It also plays as a sources of fund to the banking sector.
Development of agriculture sector: Agriculture sector is the most important area if the
country wants to grow their economy. Major of the country financial funds are been generated
through this sector. UK banking sector give more importance to this sector as the product
produce by this are bean export to other country with higher price. To develop the agriculture
sector, they grant loan to those farmers who need it at very low interest rate. Traders of these
commodities are provide loans with different schemes and low mortgage. One of the vital role
that UK banks are played is that they open semi banks in the rural area of the country which can
provide credits to the small farmers. This sector is the best way for any country to enhance their
economy in wider way.
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Granting government spending: Banks play a role of an agent for government. All the
government spending is being promoted by the commercial bank of that city. Same in the case of
UK. The UK banks also act as a mediator from the expenses incurred by the federal government.
They provide funds to the government which was used by the authority in developing the
economy. They issue bonds and security, treasury bill on behalf of the government (Naseer and
et. al., 2021).
These all are the role that are being played by the banking sector of the UK so that their economy
can be boost and they can provide help to the citizen of their country.
What is the relationship of banking sector and economic growth?
According to the Coccorese and Shaffer (2021), banking sector performs various functions in
economy, it increases the allocation of scarce capital by extending credit to gain productive
result. The one of the benefit which is gained by economy through banking sector is that it offers
liquidity by funding illiquid assets with liquid liabilities. Though this, bank help savers so that
they can manage their liquidity risk and enable long term investment. Banking sector plays an
important role in economy as they facilitate money movements between fund suppliers and fund
demander. The money movement occurs by attracting savings and channelling these savings as
loans in order to finance different economic activities that help in encouraging economic growth.
In order to grow economy, a developed baking sector is required. The banking sectors of the
economy must be stable and sound so that they can absorb the shock. A well-developed banking
sector plays an integral role in improving the economic growth of country. The link between the
economic growth and baking sector has broadened the financial services and products that satisfy
the rapid expansion of economic activities. The banking industry is playing vital contribution to
accelerate the process of economic development. There is a positive relationship between the
banks and the economy, which means that if any problem occurs in one it will automatically
affect the other. The desire of the household to save stimulates and which enhance the degree of
savings. The savings which individual invest is used by the banks to create the flow of capital in
the economy (Mtar and Belazreg, 2021). Bank creates the new capital in the country which helps
them to use in the process of growth. Banking sector open the doors for many stakeholders to
raise the amount or invest in bank which help them to maintain the quality of financial services
which help the economy to grow. Banks not only uses the money of the citizen but they also
allow foreign direct investment which is a great source to raise the economic condition.
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Economy development not depends upon the factors that lies inside the nations but also depends
upon other nation also. Banking sector openness has directly affected the growth of the economy
where they improves the financial services access and indirectly by helping the financial
intermediators in improving their efficiency. Both of these help in reducing the cost of finance by
using the capital accumulation for economic growth. The commercial institute also grants loan to
the agriculture unit which is the greatest source for the economic development. They provide
capital to the farmers in lower rate so that agriculture activity can be increased and individual can
raise their capital which they can use for various agricultural activities. The agriculture activity
helps in economic development as what is produced in the country is not only consume by the
citizen but also export in the other currency which helps the government of the country to get
foreign currency which they can be used in their development. Agriculture is the main source of
the government income as the product that is produced in the country is exported in other
country at higher price. The next role the banking sector play as they grants many subsidies to
the small and medium size enterprise which help them to invest in diversification and increase
productivity (Naseer and et. al., 2021). The SMEs are increasing day by day which help the
country to reduce the rate of unemployment. If the unemployment rate will decrees then this will
grow the country as there is vast production which will be there also the personal income of the
individual rise and government will receive more tax which they can use in technological
advancement. If the country start getting more technology then all the work can be done in
effective and efficient manner and the burden will also decrees. Technology plays a vital role as
they help the country to develop and innovate product in less cost and these product can be sale
outside the country and help the government to earn high interest rate on trade. Banking sector
are interlinked with the economy as they help the government by paying their debts so that
balance of payment can be balanced which help the country to attract investor which can either
invest in national company or can built their MNCs over there.
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RESEARCH METHODOLOGY
Research methodology is the process of collecting and analysing information from the
various types of methodology. There are different types of methodologies that helps investigator
in data collection and evaluation. These methodologies are described as below;
Research philosophy: There are three types of research philosophies such as ontology,
epistemology and axiology. All these are effective but in accordance to the present investigation,
epistemology philosophy is valuable for the research (Nayak and Singh, 2021). Under this
philosophy, positivism, interpretivisim and critical realism are main types that are effective in
data collection, evaluation and usage. In order to gather, analysis and use quantitative data about
the influence of banking sector in economic growth and development of UK country, positivism
philosophy is selected.
Research approach: This is the process of evaluating gathered information through
effective research approach. There are two approaches of the research such as inductive and
deductive. Both approaches of the research are essential but in accordance to the present
investigation, deductive approach is more valuable (McCosker and Gerrard, 2021). On the other
hand, inductive approach is not valuable in present investigation because it not helps in
evaluating of numerical information within minimum time period. Thus, deductive is a chosen
approach within a present investigation.
Research design: This is the process of identifying research problem through the use of
research design. There are three types of research designs such as exploratory, experimental and
descriptive. All these are essential but in accordance to the present investigation, descriptive is a
chosen design. There are various benefits of using descriptive design such as identify research
problem, helps in attaining valid outcomes, facilitate in collecting and evaluating numerical
information etc.
Time horizon: Time is essential within a research because it facilitate investigator in
completing each activity of the dissertation within given time period. There are two approaches
of time horizon such as cross-sectional and longitudinal. Both approaches are essential but in this
research cross-sectional is a selected approach because it based on actual situation and not
require maximum time (Hafidz and Elihami, 2021). Longitudinal is another approach of the time
horizon that is not essential in this research because it takes long time.
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Research Choice: This is the process of gathering and evaluating information regarding the
topic. There are three main choices of the research such as mono method, mixed method and
multi-mixed method. All these are effective choices but in accordance to the present
investigation mono method is a selected choice. Under this choice, quantitative is a chosen
method because it helps in collecting numerical information within given time period. There are
various benefits regarding the use of quantitative method such as helps in gathering information
from larger sample, not require additional time and cost, assist in getting valid outcomes and
many more. These are also considering major reasons behind the selection of quantitative
research within current dissertation (Gregório and et. al., 2021). Qualitative is another type of
mono method that is not essential in present investigation because it require maximum amount of
capital, require maximum time and many more. As a result, quantitative is a selected choice
under mono method.
Data Collection: This is the process of collecting information about the topic from primary
and secondary sources. Within an investigation, primary and secondary method of data collection
are used with purpose to achieve research aim and objectives in successful manner. Primary
research is a type of research that helps in collecting first hand data from specific research
instrument (Chivanga and Monyai, 2021). According to the present investigation, questionnaire
is used for collecting primary data about the influence of banking sector in economic growth and
development of UK country. In order to collect secondary information, there are various sources
such as books, articles, journals, magazines and many more. Therefore, both primary and
secondary are essential method within a dissertation.
Sampling: This is the process of selecting sample from total population. There are two
methods of sampling such as probability and non-probability. Both are the effective methods of
sampling but within a present investigation, probability is a chosen method because it facilitates
in selection of larger sample within minimum time. There are different advantages of selecting
probability sampling such as higher level of reliability of research findings, absence of
systematic error and many more (Benfell, 2021). By using probability sampling, 20 manager of
HSBC bank are selected randomly. On the other hand, non-probability is another type of
sampling that is not useful within present study because it not helps in selecting larger number of
respondents and require maximum time. Thus, probability is a selected sample technique in this
research.
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Research instruments: There are different instruments of data collection such as
questionnaire, interview, observation, focus group and many more. All these are main
instruments but for gathering primary information regarding the influence of banking sector in
economic growth and development of UK country, questionnaire is a chosen instrument. There
are various benefits of selecting questionnaire as a research instrument such as inexpensive,
comparability, scalability, no pressure, respondent anonymity etc. Therefore, all these are main
reasons for selecting questionnaire in present study.
Data analysis: this is the process of evaluating gathered information through research
analytical tool. Within this research, quantitative data is collected via questionnaire and for
evaluating this, there is requirement of using frequency distribution analysis (Bino, 2020). This is
an analytical tool and helps researcher in quantitative data evaluation. There are various reasons
behind the use of frequency distribution analysis such as not require maximum time, helps in
getting valid outcomes and many more.
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DATA ANALYSIS AND INTERPRETATION
Data analysis refers to the process of analysing collected data from a research analytical
tool. Within this investigation, quantitative data was gathered from questionnaire and for
analysing this frequency distribution analysis is applied by researcher. This is an effective and
useful tool within a research as it facilitates quantitative data analysis. Along with this, Ms-Excel
is also used for making tables and graphs according to the research questions. Therefore,
frequency distribution analysis of the present investigation is shown as below:
Frequency distribution table
Q.1. As per your opinion, which industry influences economic growth of UK? Frequency
a) Service sector 3
b) Banking sector 10
c) Construction industry 2
d) Tourism industry 5
Q.2.Does baking sector play an important role in enhancing economic growth and
development of UK?
Frequency
a) Yes 15
b) No 2
c) Can’t say 3
Q.3. According to you, what are the different activities of banking sector? Frequency
a) Accepting Deposits 5
b) Lending of funds 3
c) Online banking 6
d) Debit and credit cards 6
Q4. How would you rate the quality of banking services you currently provide to
your customers?
Frequency
a) Very high quality 5
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b) High quality 6
c) Low quality 5
d) Very low quality 4
Q.5. According to your experience, what is the core service for which your
customers have approached to HSBC in comparison to other banks?
Frequency
a) Personalised service 5
b) Wide branch network 5
c) Customer service 5
d) Computerised banking 5
Q.6. What is the role of banking sector on economic growth and development of
UK?
Frequency
a) Helps in removing deficiency 6
b) Creating employment opportunity 4
c) Providing loans to foreign currency 4
d) Implements the monetary strategies 6
Q.7. According to you, creating employment opportunity is main role of banking
sector in improving economic growth and development of UK?
Frequency
a) Yes 15
b) No 5
Q.8. According to you, does banking industry help economy by allocating capital
into most productive ventures?
Frequency
a) Yes 18
b) No 2
Q.9. According to your knowledge, in what kind of ventures do banks allocate
their capital?
Frequency
a) Small scale business 5
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b) Economic development and infrastructure 5
c) Foreign businesses 5
d) Helping government 5
Q10. What is the relationship of banking sector and economic growth? Frequency
a) Positive 15
b) Negative 3
c) Neutral 2
Q11. As per your experience, what is the impact of allocating money by the banks
over national economy?
Frequency
a) Increased access to the capital 6
b) Enhanced global market presence 3
c) Improved infrastructure 2
d) Growth in FDI 5
e) Encouragement to small scale industry 3
Q12. What are the negative impacts over economy due to inefficiency of banking
services?
Frequency
a) Limited availability of funds 5
b) Issues in foreign exchange transactions 5
c) Barriers in economic development 5
d) Issues in meeting global standards 5
Data interpretation
Table 1: Which industry influences economic growth of UK
Q.1. As per your opinion, which industry influences economic growth of
UK?
Frequency
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a) Service sector 3
b) Banking sector 10
c) Construction industry 2
d) Tourism industry 5
Interpretation: From the above graphical demonstration this can be concluded that there
are various sectors which are associated with developing economic growth of the nation. For
this, 3 out of 20 respondents said service sector is main sector that contribute in improving
economic growth of UK. 10 participants have knowledge that banking sector plays an important
role in enhancing economic growth and development of United Kingdom. 2 participants are in
support with construction industry as they help in enhancing UK’s economic growth. Remaining
5 respondents have an idea that tourism industry contributed more in improving economic
growth of UK. Therefore, all these are main sector but banking sector is foremost sector that
helps in enhancing economic growth as well as development of UK.
Table 2: Banking sector play an important role in enhancing economic growth and development
of UK
Q.2.Does banking sector play an important role in enhancing economic Frequency
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growth and development of UK?
a) Yes 15
b) No 2
c) Can’t say 3
Interpretation: From the above stated table and graph, it has been interpreted that
banking sector is main sector that play an essential role in improving economic growth and
development of United Kingdom. For this statement, 15 out of 20 respondents said yes, 2 said no
and remaining 3 can’t say about the same. Therefore, majority of participants said yes, it means
banking sector played important role in enhancing economic growth of the country. Banking
sector helped in providing job opportunities, improving infrastructure, enhancing the access to
financial services and efficiency of financial intermediaries. In this manner it can be said that
there are various measures which are being fulfilled by banking sector as banking sector is
associated with lending money to all the departments so that to let them execute their business
functions and to provide them significant edge in managing their business and daily needs as
well.
Table 3: Different activities of banking sector
Q.3. According to you, what are the different activities of banking Frequency
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sector?
a) Accepting Deposits 5
b) Lending of funds 3
c) Online banking 6
d) Debit and credit cards 6
Interpretation: There are various activities of banking sector. 5 participants out of 20
has been determined that accepting deposits is main activity as banks pay interest to lenders and
customers as well as they offer loans and interest to the customers. Bank is regarded as the
primal source for organisation and normal people as well in terms of lending money and
providing loan facilities. Bank is considered as the prominent financial resource in which they
are associated with giving such assistance to businesses and people in which they can meet their
personal and professional needs in significant manner. Under this research out of 20
respondents, 3 respondents have an opinion as landing of funds is an effective activity. In this
activity, bank is giving loans and advances to the customers from amount received from various
clients. 6 out of 20 participants said online banking is important activity because in this customer
have now made great shift from branches to virtual banking. Remaining 6 respondents have a
knowledge that debit and credit cards is essential activity followed by banking sector in UK. In
21

this, banks compete continuously for the business as well as provide various types of credit-card
accounts.
Table 4: Rate the quality of banking services you currently provide to your customers
Q4. How would you rate the quality of banking services you currently
provide to your customers?
Frequency
a) Very high quality 5
b) High quality 6
c) Low quality 5
d) Very low quality 4
Interpretation: It has been analysed from the above mentioned information or table that
high quality of services provided by banking sector of United Kingdom to their customers. It
means, banking industry is one of the main sectors that provided effective services to the
customers. These services are checking accounts, savings accounts, insurance, wealth
management, debit and credit cards and many others. All these are effective and useful services
offered by banking industry to their customers. This turn to impact over the growth and success
of banking industry as well as economic growth. In this manner out of 20 respondents 5 have
said that they are getting very high quality of services from their bank which means that they are
22

satisfied. On the other hand, 6 respondents have answered that their bank is providing high
quality of services and they are happy to use such services. Besides this, 5 have said that they are
experiencing low quality within their banking services and at last 4 have said that they are facing
very low quality of services from their bank. It means that every person is having their own
choices in respect of reaching to the judgement of their banking services.
Table 5: Core service for which your customers have approached to HSBC in comparison to
other banks
Q.5. According to your experience, what is the core service for which
your customers have approached to HSBC in comparison to other banks?
Frequency
a) Personalised service 5
b) Wide branch network 5
c) Customer service 5
d) Computerised banking 5
Interpretation: From the above mentioned graph and information, it has been
determined that there are various core services that attracted customers towards HSBC as
compared to other banks. For this, respondents have equal options that are personalised service,
wide branch network, computerised banking and customer services. All these are effective and
23

useful services that attract larger base of customers within minimum time period. HSBC is one of
the international bank which is having presence in global market. Out of 20 respondents, 5 have
said that the major core service provided by HSBC bank for which the organisation is getting
separate edge into the market is their personalised services as the organisation is significantly
providing such services. Besides this, 5 have said that HSBC is having wide branch network
which is regarded as the core service for them to choose HSBC over any other bank. On the
other hand, 5 respondents have answered that HSBC is providing optimal quality of customer
services which is the major reason for those respondents to choose HSBC over any other bank.
At last 5 have said that HSBC is providing computerised banking services due to which
respondents face convenience to use such services and this is the reason that banking services of
HSBC are preferred over any other banking services.
Table 6: Role of banking sector on economic growth and development of UK
Q.6. What is the role of banking sector on economic growth and
development of UK?
Frequency
a) Helps in removing deficiency 6
b) Creating employment opportunity 4
c) Providing loans to foreign currency 4
d) Implements the monetary strategies 6
24

Interpretation: From the above graphical demonstration this can be analysed that banking
sector is associated with providing significant benefits to the various sectors existed with
economic zone of the country. In this manner it can be concluded that role of banking sector is
aligned with providing various economic benefits to the nation so that overall improvements in
economic positions can be seen within the country. Under this research out of 20 respondents, 6
have said that in the context of economic development banking sector is helping the nation in
removing monetary deficiency by lending money to needed one. On the other hand, 4
respondents have said that banking sector is creating higher employment opportunities for people
due to which economic growth to the nation can be provided and this may have long term
positive impact over the nation. Similarly, 4 respondents have said that baking sector is
providing loans to foreign country which is providing economic development to the nation. In
this manner foreign investments can be provided and economic development can be exerted. At
last, 6 have said that banking sector is associated with implementing monetary strategies to the
nation in which regularisation to monetary aspects can be seen and at the same time economic
development can also be exerted.
Table 7: Creating employment opportunity is main role of banking sector in improving
economic growth and development of UK
Q.7. According to you, creating employment opportunity is main role of
banking sector in improving economic growth and development of UK?
Frequency
a) Yes 15
25

b) No 5
Interpretation: From the above graph this can be concluded that banking sector is associated
with executing the role of managing employment and creating employable opportunities for
people so that huge people can be aligned with banking facilities and financial benefits can also
be rendered. In the context of UK as the country is regarded as one of the prominent country in
which higher economic development is seen. In this manner out of 20 respondents, 15 have said
that creation of employment is regarded as the major function of banking industry in which
economic development can be seen within the nation and monetary aspects can be fulfilled.
Besides this, 5 respondents have said that banking industry is having various other roles which
helps the country to maximise their economic growth and acquire appropriate success
opportunities as well. In this manner it can be said that banks are having different roles to
execute which are having their alignment in dealing with higher economic growth.
Table 8: Banking industry help economy by allocating capital into most productive ventures
Q.8. According to you, does banking industry help economy by
allocating capital into most productive ventures?
Frequency
a) Yes 18
26

b) No 2
Interpretation: From the above response this can be analysed that the major role of banks is to
lend and deposit money so that various aspects can be covered. Banks are taking deposit in order
to use the vacant money in economic development in lieu of providing interest on that money to
the general public. In the same manner bank is lending money to needed party so that productive
ventures can be created by them which are having their direct role in managing economic
growth. In the current research, out of 20 respondents 18 have said that banking industry is
helping the economy to allocate their capital to most productive ventures so that economic
growth opportunities can be rendered. On the other hand, 2 respondents have given their answer
as no in respect of the above statement. The banking system plays significant role in the current
modern economic world which means that bank collect funds and lend the same outside to the
businesses so that new capital can be created and at the same time assistance to the country can
be given in terms of growth process. This is analysed that there are significant impacts which are
seen during economic development and banks are playing one of the prominent role in the same.
Table 9: Kind of ventures do banks allocate their capital
Q.9. According to your knowledge, in what kind of ventures do banks
allocate their capital?
Frequency
a) Small scale business 5
27

b) Economic development and infrastructure 5
c) Foreign businesses 5
d) Helping government 5
Interpretation: From the above graphical representation this can be concluded that there are
different ventures for which banks are associated with developing their businesses so that to
provide these businesses higher growth opportunities and development measures in long term as
well. With the help of allocating funds by the bank this will be easier for such businesses to
acquire assistance in respect of financial support and long term business survival as well. In the
current research out of 20 respondents, 5 have said that banks are emphasised on allocating their
capital to small scale businesses so that developing measures can be provided to the business and
in the same manner developing measures can be rendered. On the other hand, 5 respondents have
said that banks are allocating their capital to economic development and infrastructure so that
economic growth opportunities can be rendered by the nation and economy can be boosted.
Besides this 5 have said that banks are allocating their capital in foreign business so that foreign
investments can be increased and at the same time economic development opportunities can be
seen by the nation. At last 5 have said that banks allocating their capital for helping government
so that the money can be used in managing national development and public welfare causes.
28

Table 10: Relationship of banking sector and economic growth
Q10. What is the relationship of banking sector and economic growth? Frequency
a) Positive 15
b) Negative 3
c) Neutral 2
Interpretation: From the above graph this can be concluded that the role of banks is having
diversified roles within this modern economic world. Banks are playing significant role in
developing the economy of UK as they keep money of people in safe custody and give
appropriate amount of interest on deposited money to investors. On the other hand, banks are
playing the role of mediator in those who have surplus money and those who are in the need of
money so that monetary balance can be exerted. Banks help in providing working capital
assistance to the companies so that they can get financial help in order to meet their expansion
plans. In this manner under the current research out of 20 respondents, 15 have said that banks
are having positive relationship with economic development of the nation in which differentiated
roles are being exerted by banks. On the other hand, 3 have denied for the same statement as they
are not in favourable opinion that banks are having positive role in developing the economy, at
last 2 are neutral with their opinion.
29

Table 11: Impact of allocating money by the banks over national economy
Q11. As per your experience, what is the impact of allocating money by
the banks over national economy?
Frequency
a) Increased access to the capital 6
b) Enhanced global market presence 3
c) Improved infrastructure 2
d) Growth in FDI 5
e) Encouragement to small scale industry 4
Interpretation: From the above mentioned graph or table, it has been interpreted that
allocating money by the banks over national economy has positive impact. 6 out of 20
respondents have an idea that increased access to the capital is main impact of allocating money.
3 participants have an opinion that enhanced global market presence is essential impact as it
helps in increasing growth of national economy. 2 respondents have a knowledge that improved
infrastructure is significant impact of allocating money by the banks on national economy. 5
respondents said that growth in FDI is essential impact, whereas remaining 4 respondents have a
30

knowledge that encouragement to small scale industry is a biggest impact. Therefore, all these
are major impacts that also has their influence over the growth of economy.
Table 12: Negative impacts over economy due to inefficiency of banking services
Q12. What are the negative impacts over economy due to inefficiency of
banking services?
Frequency
a) Limited availability of funds 5
b) Issues in foreign exchange transactions 5
c) Barriers in economic development 5
d) Issues in meeting global standards 5
Interpretation: It has been interpreted from the above mentioned graph or table that there is
various negative impact over economy due to inefficiency of banking services. these impacts are
limited availability of funds, issues in foreign exchange transactions, issues in meeting global
standards and barriers in economic development. All these are major impacts that negatively
impact on UK economy. When banking services are not appropriate in the nation then this would
lead into emergence of various negative aspects. In this manner out of 20 respondents, 5 have
said that due to insufficient banking services in the country this would lead into limited
availability of funds so that businesses may face difficulties in managing their operations. On the
31

other hand, 5 have said that when inefficiency in banking services are faced then this would lead
into creation of issues in foreign exchange transactions so that developmental opportunities for
the nation can be minimised. Besides this, 5 respondents have said that due to insufficient
banking services barriers in economic development can be seen which means that monetary
policies may be tarnished. At last, 5 respondents have said that due to insufficient banking
services in nation this would face issues in meeting with global standards so that their ranking
may reach to lower range.
32

Discussion on secondary basis
Theme 1: Different activities of banking sector
From the gathered secondary information using literature review this is analysed that
there are various operations which are performed by banks as their primary and secondary
functions so that to serve their customers and to deal with general utility services as well. Banks
are performing different activities related with money transaction and trading settlements. Key
activities of banking services are related with accepting deposits so that needs of customers can
be met. These are the deposits which are related with fixed deposit, current deposit and saving
accounts. Banks are giving interest so that customers can be encouraged and in this manner
overall business activities can be managed in significant manner. On the other hand, lending of
funds is regarded as another activity which is exerted by banks in their course of action. Banks
are providing loans to general public and businesses so that they can they can manage their
business functions and provide them such amount of money which would develop their needs
and demands. Besides this, online banking is the another activity which is executed by banks in
order to reach out to their customers and provide them services in faster manner. Banks are
providing debit and credit cards to their customers for the purpose of giving them customised
services. In the current time banks are providing overseas banking facilities as well so that they
can develop their international clientele and manage business in international manner as well
(Hou and et. al., 2018). Banks are executing functions related with accepting deposits in which
banks pay interest to the lenders and offer interest to customers for their loan amount.
The deposits are known as fixed deposit, current account and saving accounts. Besides
this, banks are associated with function of lending of funds in which bank is providing advances
and loans to customers so that on received deposits banks can cover different customers. The
customers are making advances by using cash credits, discounting bills and overdrafts. These
funds are given by the banks so that to support various industries and managing business
activities. Online banking is the other function exerted by banks in which growth to e-commerce
and internet in which banking sector is promoted. Customers are getting assistance in managing
their accounts through virtual banking. Online banking activities has made life of people easier
in which customers can operate their bank account from their home or offices. With the help of
internet and mobile customers can connect with bank's website and this is providing them ease to
use such services at their door step. Debit card and credit cards are the other services which are
33

provided by banks to their customers. These are issued by the banks in which economic
conditions. With the help of issuing credit card profitable lending can be made by the banks. This
is analysed that in the current time credit cards are regarded as one of the prominent source in
which various offers are given by the banks to their users. On the other hand, as debit card is the
other services which is given by banks in which customers can use their own money by
withdrawing the same from their accounts.
Overseas banking services are other services which are given by banks and would
provide opportunities to foreign clients to lend money. The foreign clients of a banks could be
some individual and other international banks. These are the services which are helpful for banks
to develop their international clientele and acquire prominence in meeting higher market image
as well. Investment banking is the other services which are given by banks which includes
assessing investment requirement so that needs to manage overall liabilities can be rendered.
Banks are providing several support to the nation in which investment opportunities are
broadened and would be helpful in analysing cash flow and different actions related with client.
Banks are also providing bill payment services in which automatic payment services are given to
their customers and in this manner customers may feel easiness in paying different bills. At last
banks are providing funds remittance services in which banks gives opportunities to individual to
transfer their funds from one place to another. There are various banking instruments which are
helpful in transferring money from one place to another such as pay orders, mail, drafts and
many others. In this banks earns nominal interest and some banks charges and in lieu of this
different prominent facilities are given to customers.
Theme 2: Role of banking sector on economic growth and development of UK
From the gathered secondary information using literature review this is analysed that
banking sector is regarded as backbone of the economy in which overall development to the
nation can be rendered. Banks are providing financial support to the nation in which various
investment activities are exerted and could be helpful in managing all the resources in equitable
manner. Banks are helping the economy of UK to meet high economic growth opportunities and
to develop infrastructure growth aspects as well (Durusu-Ciftci, Ispir and Yetkiner, 2017). Bank
of England is associated with declining the interest rate which is required to be paid at the time
of inflation. This is helpful in proper execution of financial stability so that development
opportunities can be inhaled. On the other hand, banks are helping the nation to minimise various
34

deficiency related to monetary aspects so that adequate capital can be formed in order to develop
the economy. In the context of UK mobilising of funds are regarded as the major role exerted by
banks which helps the nation to grow and acquire several opportunities to dispense such savings
into allocation of financial resources. Banks are creating higher employment opportunities for
people as after the implication of global pandemic COVID-19 the world is facing the major
issue of job losses. In this manner banks are providing ample opportunities for employment in
which different jobs are created which is directly leading the nation to grow and sustain. Banks
are generating large quantity of jobs so that they can develop the economy in appropriate
manner. Banks are providing loans to foreign currency in which economic development
opportunities are rendered by the banks to their country. This loan is granted over foreign
currency and this will develop various sectors and other foreign projects as well. Financial
institutions are also supporting such markets in which higher expansion opportunities can be
provided to the country. Banks are associated with providing balanced development support to
the nation. For instance Barclays, HSBC and many other banks are developing their business
functions in worldwide manner. These are the banks which are providing diversifying activities
in various parts of the country. These banks are diversifying their activities in rural areas so that
to provide balanced development to the nation and this way economic development opportunities
to the nation can be provided in prominent manner. Banks are associated with developing such
resources in which communities can be developed in significant manner. Banks are also
implementing monetary strategies to the nation so that to regulate money and to implement such
strategic ways so that national impact can be received. Banks are associated with boosting saving
habits of individual and for this banks are offering various schemes. By providing high rate on
saving amount banks are attracting large customers so that they can develop their habits of
savings. In the recent time banks are associated with exerting their role of developing agriculture
sector so that to generate and uplift the sector. This is analysed that majority of funds are
generated through agriculture sector and in this manner banks are trying to emphasise over this
industry so that to promote their farmers. In order to develop agriculture sector banks are
granting loans to farmers at a very low interest rates so that farmers can enjoy benefits out of
such money in order to manage their agricultural activities. Banks are playing vital role in acting
as agent for government as all the government spending are promoted by commercial banks. The
banks in UK are also playing the role of mediator from the expenses incurred by the federal
35

government. In this manner banks are playing significant role to boost overall economy in
appropriate manner which leads the country to grow in overseas boundaries.
Theme 3: Relationship of banking sector and economic growth
From the above gathered information using literature review this can be concluded that
banking sector is exerting various functions to the development of economy. In this manner
banks are associated with allocating scarce resources in extending credit so that to acquire
productive results. The major benefit from this aspect is related with acquiring benefits as in
terms of liquidating assets and liabilities so that higher assistance can be given to the businesses
existed within territories. Using such aspects banks are rendering liquidity risks in which long
term investments are made (Bernini and Brighi, 2018). Banking sector is playing significant role
for the economy in which supplier and fund demander role is exerted. The movement of money
is occurred by channelising the saving as loans so that different financial support can be given to
encourage economic growth to the nation. In the path to grow within economy banking sectors
are playing the role to provide stability and support to nation in terms of monetary benefits and
assistance. When banking sector within a country is well developed then this will give rise to
various opportunities as in terms of improved economic growth and financial robustness. Banks
are providing financial support to various sectors which is associated with developing
infrastructure growth and this will lead into providing interlinked support as in terms of
managing various resources.
36

CONCLUSION
From the above mentioned information or findings, it has been concluded that banking
sector has their positive influence on the economic growth of United Kingdom. As compared to
other sectors such as service sector, construction industry, tourism industry etc., banking industry
played important role in improving economic growth of United Kingdom. There are different
activities played by banking sector such as accepting deposits, online banking, lending of funds,
overseas banking services, debit and credit cards, investment banking, bill payment services,
remittance of funds, wealth management etc. All these are main activities performed by banking
sector that helps HSBC bank as well as country in improving their economic growth. Along with
this, there are certain roles played by banking sector in improvement of UK economic growth
and development. These roles are helps in removing deficiency, developing employment
opportunities, providing loans to foreign currency, implementing monetary strategies, balanced
development, boost the saving habits, development of agriculture sector, granting government
spending etc. It has been determined that banking sector has positive relationship with economic
growth of United Kingdom. There are number of core services that attract larger number of
customers towards HSBC bank. These core services are personalised service, wide branch
network, computerised banking and customer service. Along with this, the loans offered by
banks to the investors as well as customers enhance the people living standards and lower
economic recession substantially. Banking sector within the UK is more important as compared
to other sector because banks support in capital formation, generate employment and promote
industrial bloom. This industry plays an essential role in the betterment or improvement of the
economy. As it helped in increment of growth rate that makes UK economy more stable as well
as move towards development. The banking industry has played significant role within the
economy.
There are some ventures that helps baking industry by allocating capital. These are small
scale business, foreign businesses, economic development and infrastructure, helping
government etc. Along with this, allocation of the capital by the banks has their direct impact on
the national economy. These are increased access to capital, growth in FDI, improved
infrastructure, enhanced global market presence and encouragement of small scale industry.
Apart from this, there are also some major negative impacts on economy due to inefficiency of
banking services. These negative impacts are limited availability of funds, issues in meeting
37

global standards, barriers in economic development, issues in foreign exchange transactions etc.
All these are major problems that have negative impact over the economic growth and
development of India.
Apart from this, primary and secondary methods have been used for collecting accurate
information regarding the role of banking industry in betterment of economic growth of UK.
There are also various methodologies have been used by researcher. These are quantitative
choice, deductive approach, positivism philosophy, questionnaire and many others. All these are
effective methodologies and helped investigator in attaining research aim and objectives within
minimum time and in successful manner. Questionnaire helped researcher in collecting reliable
and valid data in given time period that resulted in accomplishment of aim and objectives of the
research successfully.
RECOMMENDATIONS
From the above mentioned information, it has been recommended that there are different
ways or strategies that would be used by banking industry with purpose of improving economic
growth of United Kingdom. Some recommendations are given to the banking industry as below;
Providing job opportunities: This is a recommendation to the HSBC bank to provide job
opportunities to the unemployed people. This assist economy by enhancing their GDP (Gross
domestic product). In the current time after pandemic banks are having vital options to involve
their public and provide job opportunities so that to develop their country and to provide support
to unemployed people. This is analysed that unemployment is one of the greatest curse which is
seen within the nation and lead to minimise growth opportunities as well. So with the help of
providing job opportunities banks may provide economic support to the nation and overall
growth opportunities can also be inhaled.
Standardisation and security: Banks are executing crucial functions related with money and
development needs. These are the functions which requires higher attention and security
measures so that to execute the same in full manner. In this manner banks are required to
maximise their security constraint so that they can attract more customers and acquire edge into
the market. Besides this, banks are required to stay consistent across all the touch points so that
to involve their employees in prominent manner and to provide them benefits in terms of
monetary and moral support. Banks are incorporated for providing financial support to the nation
38

so that various activities are required to be initiated so that continual financial support can be
given to the nation.
Allowing of self-service: In the current time customers are highly preferred over using self-
service counters as this saves their time and resources as well. In this manner banks are
recommended to develop self-service points so that customers can get their customised services
and satisfy their needs as well. This would be helpful for the banks to maximise their service
range and acquire benefits in terms of widening economic growth. On the other hand, this is
analysed that banks are required to embrace financial technology so that to provide support to
their customers.
39

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41

APPENDIX
Questionnaire
Q.1. As per your opinion, which industry influences economic growth of UK?
a) Service sector
b) Banking sector
c) Construction industry
d) Tourism industry
Q.2.Does baking sector play an important role in enhancing economic growth and development
of UK?
a) Yes
b) No
c) Can’t say
Q.3. According to you, what are the different activities of banking sector?
a) Accepting Deposits
b) Lending of funds
c) Online banking
d) Debit and credit cards
Q4. How would you rate the quality of banking services you currently use?
a) Very high quality
b) High quality
c) Low quality
d) Very low quality
Q.5. According to your judgement what is the core service for which you have approached HSBC
in comparison to other banks?
a) Personalised service
b) Wide branch network
c) Customer service
d) Computerised banking
Q.6. What is the role of banking sector on economic growth and development of UK?
a) Helps in removing deficiency
42

b) Creating employment opportunity
c) Providing loans to foreign currency
d) Implements the monetary strategies
Q.7. According to you, creating employment opportunity is main role of banking sector in
improving economic growth and development of UK?
a) Yes
b) No
Q.8. According to you, does banking industry help economy by allocating capital into most
productive ventures?
a) Yes
b) No
Q.9. According to your knowledge, in what kind of ventures do banks allocate their capital?
a) Small scale business
b) Economic development and infrastructure
c) Foreign businesses
d) Helping government
Q10. What is the relationship of banking sector and economic growth?
a) Positive
b) Negative
c) Neutral
Q11. As per your experience, what is the impact of allocating money by the banks over national
economy?
a) Increased access to the capital
b) Enhanced global market presence
c) Improved infrastructure
d) Growth in FDI
e) Encouragement to small scale industry
Q12. What are the negative impacts over economy due to inefficiency of banking services?
a) Limited availability of funds
b) Issues in foreign exchange transactions
c) Barriers in economic development
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d) Issues in meeting global standards
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