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Regulatory framework: Banking activities are governed by regulatory bodies and frameworks to ensure the stability and integrity of the financial system. Regulatory measures are implemented to oversee capital requirements, risk management practices, consumer protection, and compliance with anti-money laundering and counter-terrorism financing regulations. Interest rates and lending: Banks play a significant role in determining interest rates, which affect the cost of borrowing and the returns on savings and investments. They provide loans to individuals and businesses, contributing to economic growth and development by facilitating capital investment and consumption. Financial inclusion: Banks strive to promote financial inclusion by providing access to banking services for underserved and marginalized populations. This includes offering basic banking services, promoting financial literacy, and developing products tailored to the needs of low-income individuals and small businesses.

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