The banking system provides that there is flow of funds from the persons who are having the surplus funds to the persons who are having the shortage of the funds. Thus the finance is main base of the success of the economy. The designing of the banking system is an important aspect for the growth of the economy. There is a positive link between the banking system and the economic growth. Hence the modern banking system provides for the better performance of the country. According to the view of Joan Robertson, the level of the development in the economy creates demand in regard to the specific types of arrangements in regard to finance and thus accordingly the modern banking system helps in responding to the demand that is created by economy. The modern banking system is also helpful for the growth of the economy as it provides for the concept of financial system of optimal nature. Hence it provides that the optimal financial system will also provide legal system which is properly developed and thus will provide a proper finance based on bank. The modern banking system will also help in the improvement in the efficiency of the financing decisions and thus will also provide proper allocation of the resources which will foster the growth in the economy. The modern banking system will help in reallocation of the capital by providing a proper basis in regard to the continuous restructionof the economy which is very much required in the process of the economic growth. The modern banking system ensures that the great share of the capital investment is being done in areas which are relatively growing fast in comparison to other sectors. Hence the modern banking system will help in providing funding in the ventures which are profitable and provide high level of returns. Hence the modern banking system will help in fast flow of capital wherever it is required and thus will lead to high economic growth. The modern economic system helps in maintaining the level of competition in the economy which will also help in increasing the level of international competition to a strong level thus leading to a strong progress in regard to technology and will lead to innovative ways for improving and increasing the growth of the economy. The modern banking system provides a core banking solution, software, and the innovation of the technology which will help in increasing the level of the growth the economy. The modern banking system is concentrating on the satisfaction level of consumers which is the base for the success and the growth of the economy. The modern banking system helps in maintaining the liquidity in the economy, increasing the level of the output in the industry, increasing the level of the opportunities in relation to the job which will thereby help in increasing the gross output of the economy and hence improve the competitive position of the economy. The modern banking system also helps in maintaining the real estate business at a stable level as the real estate business are an important aspect in the gross product of the economy and the increase in the real estate business will also lead to increase in the national level output of the economy. 

The modern banking system also plays a special role in provision of funs to companies which are in a need of strong funs and thus will help in maintaining the process of growth in the well balanced manner. The system will also help the firms and other clients by reliving from the impact of different shocks of sudden nature thus maintains the liquidity of the business and clients in adverse situations which will also lead to balanced growth. The modern banking system is having intrinsic nature and thus helps in financing of the projects which cannot be financed by other sources of funds in market due to some differences between borrowers and lenders. Hence the modern banking system provides the competitive advantage in relation to the assessing and monitoring of the investment related projects which will help in overcoming the differences in the level of the information available in the market. The modern banking system is also the core of the financial market of the economy as it helps in buying and selling the securities and the other related products in different and large volumes at low transaction costs. Hence the most important task of the modern banking system in the process of the economic growth is that it helps in maintenance of adequate liquidity. 

The modern banking system helps in development of the economy by providing different services to the economy. The modern banking system helps in providing system of settlement and clearing in order to facilitate the trade, channeling the resources of financial nature between the lenders that is the savers and the borrowers and also helps in providing different products which will help in dealing with the high level of uncertainty and the risk. The modern banking system helps in maintaining the financial stability by providing financial regulation. The modern banking system helps in proper money creation in the economy as it becomes the proper intermediary between the buyers and the sellers. Thus the modern banking system helps in maintaining appropriate levels of liquidity, risks and the solvency. Hence it acts as a proper intermediary in regard to different transactions which will help in foster growth in the economy. The modern banking system is very efficient an effective and hence is providing rapid growth in different sectors of the liberalization of the economy. The modern banking system is provide wide variety to services at the global level and thus the amount of services provide to the economy had increased and thus the overall growth of the economy had also increased. 

The bank had imposed different potential costs on the society in regard to the global financial crisis. The bank had been losing money in regard to default that been created on the mortgage. The bank had suffered with high level of costs due to lose of money in the credit that had been given to the consumers and the businesses. Hence the bank had suffered with high level of losses on the provision of the credit thus the bank had reduced the amount that had been given as loan to the consumers and the businesses. Thus the cost of obtaining the loan from other sources had reduced which had led to increase in the interest rate on the loan to the business and the consumers. The assets of the banking system had been assumed as the most important part of the growth of the economy. The banking system is very complex, large, diversified and thus had suffered a lot due to the global financial crisis. The different banking institutions had been adversely affected due to the financial crisis and thus had been effected by the different government regulations. The banks had also imposed the cost of high interest rates and the processing charges in regard to the loan that is being obtained by the consumers and the business. The level of government regulations had increased on the bank which had also led to increase in the cost of the legal regulations that are to be fulfilled by the consumers and business in regard to obtaining different services from the bank. Hence the bank is actually imposing the cost in order to obtain financial stability in the business. The bank is also potentially imposing cost in regard to improving the safety and the financial soundness of the bank. Hence the bank may increase different charges in order to maintain the financial position and the wealth of the society. There are changes in regard to law which was originally applicable on the banking system before the global financial crisis. Hence the change in law led to increase in the level of the cost which is being borne by the society due to understanding the pattern of the change in law and regulations applicable on the banking system. The level of the income and the wages had declined due to the global financial crisis in the banking system which had led to huge losses in the banks as the expenses were very high in comparison to the cost. The amount of the losses were very huge in the banking sector thus there was a need that the bank need to take up the steps to control the costs. Hence the bank reduced the wages and the salaries of the person that are working with the banking system which had led to reduction in the level of the income which is being received by the consumers and hence the reduction in the wages is a type of the potential cost that is being imposed by the bank on the society. The bank had faced great hardship due to the global financial crisis and had led to the overall decline in the business in the field of the banking system and the decline in the banking business had also led to reduction in the level of the growth of the economy and the rate of growth of economy had declined.

 

The costs have emerged in the first place as the structure of the banking system is very large and complicated and the banks may fail due to various interventions of the government. Hence the bank may also face problem of the maturity and the credit. The bank is also increasing the cost as it is suffering from different issues in relation to the liquidity. The cost had been imposed with the motive of providing protection to the investors and thus to reduce the systematic risk of different managers maintaining and managing the assets. There are different regulators which are assessing the risk and thus the no single person is being found which is maintain and assessing the risk and hence the cost is being imposed in order to control the entire system of the banking. There is high growth in the prevalence of the poor, non-stable and the complex investment related products which are also transferring high level of risk to different levels of risk to the investors of retail nature. Thus the increase in the cost is being found as a result of the controlling the transfer of risk to the retail investors. The cost is also increased due to the increase in the level of the complex nature of the products that are being available in regard to provision of mortgage to the consumers. The cost is being seen as the way to minimize the level of the gap and weakness that had increased due to global financial crisis in the banking system. The cost imposed on the society by the banks is being seen as the reform for meeting out different objectives such as restoration of the financial stability in relation to maintaining the support with different other policy objectives. It will also help in maintaining the integrity in the market. Thus it will help in maintaining the economy and hence will foster the economic growth in the society. Hence the cost will help in minimizing the cost of the adverse impact of the global financial crisis on the bank. 

Hence the modern banking system is an important part of the growth of the economy as it is helping in the maintenance of the liquidity and the solvency. The modern banking system is also acting as a connection between different sectors of economy which will help in fostering growth in the economy. But the global financial crisis had led to deteriorating the position of the banking system and hence different steps are being taken by the banking system an economy in order t ensure the stability in the economy. Thus the inclusion of different steps will help in improving the situation of the economy and increasing the rate of growth of economy.