ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Characteristics of Stable Banking System:

Updated on February 13, 2012

Presence of stable banking system plays as important role in the economic development of any country as blood in human body. For rapid economic development and achievement of desired goals, it is essential that there should be a stable banking system in the country because an unstable banking system cannot fulfill the economic requirements of modern era in a batter way.

Characteristics of a stable banking system are discussed below:

  • Larger Capital

Availability of larger capital is an important and essential part of stable banking system because financial need of many sectors cannot be fulfilled without it.

  • Central Bank

Presence of such central institution is essential in a country which can act as “Hub” in money system so that the coordination in all the economic sectors of a country can be maintained according to the needs.

  • Financial Institutions

People should have the facility and direct access to the banks and other financial institutions. There should be a reasonable number of such institutions so that more and more people could get the privilege.

  • Professional Staff

It is essential that working staff of the banks and other financial institutions should be professional in their field, so that they can compete effectively with the requirements of modern time.

  • New Institutions

One of the characteristics of a stable banking system is that new financial institutions can be opened easily according to the rising needs of the economy.

  • Encouragement to Savings

In good banking system, banks offer profitable schemes to their customers, which encourage the general public to save money.

  • Loan Facility

Loan facility should be available with easy and workable conditions, so that all needy people can be benefited.

  • Increase In Production

In stable banking system, banks and other financial institutions prefer to grant loans for productive purposes, which results in higher production of the country.

  • Equal Distribution Of Wealth

Under stable banking system, most of the population in all parts of the country should have the facility of loan especially small traders and lower class should not be neglected.

  • Specialized Institutions

In stable banking system, there should be specialized financial institutions to meet the financial requirements of particular sectors

  • Monetary Policy

Application of effective monetary policy is essential in a stable banking system to control the volume of credit in country.

  • Trust of People

Complete trust of people is very much essential for strong and stable banking system, so that they can deal with the banks and financial institutions freely.

  • Free from Political Pressure

In any country all banks and other financial institutions should not be under the thumb of politics and they should work and grant loans according to their own opinion and need.

  • Implementation of Policies

If banking system follows the framed policies of government and central bank then it can work more effectively can show much progress.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)