Answer:
The role played by banks in the economic growth is that savings promote the generation of loans, and generate funds to new businesses.
Explanation:
Banks use the funds on the savings accounts to generate credits to other clients that might be persons or companies.
Suppose that you have $1000 dollars saved in your bank account. Then, your bank only needs to keep a deposit of the 10% from the $1000. This means to save $100 and use the rest $900 to generate credits to other customers.
The $900 remaining will be loan to individuals or companies to finance new projects such as: Buying a car, house, invest in machinery or re design a branch from a cloth store.
These projects boost economic growth as they move the economy with consumption, and investment.
