The Importance Of Banking And Finance Sector Of A Nation And The Performance Of Overall Country Economy
Banking is a network of corporations and regulations that provide a variety of financial services. Basically, banking services provide holding money on behalf of customers, providing loans to businesses and individuals, providing investment and insurance services and so on. Banking system is usually regulated by country’s laws and central banks of individual countries. Finance is usually defined as the science of money management. Many studies show that the banking and finance sector of a nation and the performance of overall country economy are directly proportional. Therefore, it is clear that countries with good financial system are more likely to develop its economic growth more quickly compared to others.
Singapore is now home to over 200 banks. Singapore has the fourth largest foreign exchange market in the world after London, New York and Tokyo. Its daily trading volume in 2004 averaged about US$156.6 billion. Singapore is a flourishing financial center internationally not only its domestic economy but also the entire Asia Pacific region. The banking industry is a key player in the country’s financial market segment emerging as one of the strongest in the world (Guidemesingapore.com, 2015).
2. Contribution of Banking and Finance Sector in Singapore Economy
Many of the world’s largest and most reputable financial organizations can be found in Singapore, adding value to the depth of Singapore’s financial sector that includes banking, the Asian dollar…