Question

what larger role and function could Bank Treasuries play in the financial system to serve as a stimulus to a nation’s economic growth?

Answer 1

Bank treasuries play an important role in order to serve the stimulus to the economic growth of a nation as follows-

A. Bank treasuries are going to synchronise their interest rate with the overall interest rate with the central bank and it will help the the customer to get the benefit out of lower interest rate when Federal Reserve has Lowered the overall interest rate.

B. Bank treasuries are also providing with an adequate system for implementation of the monetary policy of the Federal Reserve which will stimulate the growth in the economy.

C. Bank treasuries are managing the fund of a bank in an optimum manner that will be eliminating any kind of probability related to crisis.

D. Bank treasuries are continuously improving the Asset quality and it is also motivating the individuals to maintain a high creditworthiness which is protecting from any kind of failure

E. Bank treasuries are also focusing upon stabilizing the monetary flow into the market by adaptation of monetary policy and it will be facilitating the loan process

F. Bank treasuries are also maintaining an adequate Liquidity into the market by continuously exchanging funds.

Hence they are overall leading into stimulation of the growth of economy.