The most important function of banks in an economy is intermediation. Banks act as intermediaries between savers and borrowers by accepting deposits from individuals and institutions and providing loans to businesses and individuals. This intermediation function helps to channel funds from surplus units (savers) to deficit units (borrowers) and promotes overall economic growth and development. Additionally, banks also provide other essential services such as facilitating payment systems, providing safety and security for deposits, and offering financial advice to individuals and businesses.
