The Role of Modern Banking in Economic Growth and Financial Stability

This paper examines the critical role of modern banking systems in promoting economic growth and ensuring financial stability. It highlights how advancements in digital banking, risk-management frameworks, and regulatory reforms have transformed traditional banking functions. The study also discusses the role of banks in credit creation, payment facilitation, and financial intermediation. The findings suggest that well-regulated, technologically-enhanced banking systems contribute significantly to sustainable economic development while reducing systemic financial risks.