Question

Question 3: As financial institutions are important in the development of country. Financial institutions serve most people in some way, as financial operations are a critical part of any economy, with individuals and companies relying on financial institutions for transactions and investing. Governments consider it imperative to oversee and regulate banks and financial institutions because they do play such an integral part of the economy. As a student of financial management can you write five points regarding role and responsibilities of financial institutions carrying day today in Sultanate of Oman. Can you quote any one financial institution and how day to day activities functioning.

(write up to 200 words pls)

Answer 1

The bank plays an important role in the country's economic development. Without a strong and effective banking system, no country can have a healthy economy. People should be encouraged to deposit their surplus funds into banks. These funds are used to provide loans to industries and therefore to make productive investments. Bank Muscat is the prominent financial institution in the Sultanate of Oman. It was founded in 1982. This bank plays a very important role in Oman's economic development by providing almost all financial services such as corporate banking, retail banking, investment banking, treasury, private banking and wealth management. Bank Muscat can contribute to the country's economic development in the following ways:

Helps implement monetary policy

Bank Muscat helps the country's economic development by implementing the monetary policy of the Central Bank of Oman. The central bank depends on financial institutions for the success of its monetary management policy in accordance with the requirements of an economy. Therefore, the Muscat Bank contributes significantly to the growth of the economy by lending to trade and industry, assisting in the formation of capital and following the country's monetary policy.

Financial amenities for trade

Bank Muscat offers all types of services, such as discounts and acceptance of bills of exchange, overdraft services, issue of drafts, etc. to promote trade. In addition, they finance both exports and imports by providing foreign exchange services to importers and exporters of goods.

Eliminate the shortage of capital formation.

Economic development is impossible unless there is sufficient amount of capital formation. Bank Muscat mobilizes deposits that offer attractive interest rates and, therefore, converts the savings into capital, distributing these savings through loans between productive companies useful in building the nation.

Promote people's saving habits.

Bank Muscat attracts depositors by introducing attractive deposit schemes and providing higher interest rates. The Bank offers different types of deposit schemes to its customers. It create savings habits among people. The Bank provides different accounts based on customer needs, to attract customers.

Helps create job opportunities.

Bank Muscat helps provide financial resources to industries, which helps generate job opportunities automatically. Income and job creation are two very important contributions, successfully maintaining a healthy credit line for the industrial sector, as well as for the economy in general, is another important contribution from the financial sector.

Financial assistance for consumer activities

Bank Muscat advances consumer loans for the purchase of items such as houses, furniture, etc. In this way, they also help improve the living standards of people in the country by providing loans for consumer activities.