Financial institutions, like banks, play a big part in helping the economy grow. Here’s how they do it:
Helping Businesses Get Money: Banks lend money to businesses so they can invest and grow. For example, in 2020, banks in Sweden gave out over $250 billion in loans. This money helps companies expand and create jobs.
Encouraging People to Save: Banks offer savings accounts where people can keep their money safe. This helps people save more. In Sweden, families saved about 16% of their income in 2020.
Protecting Against Risks: Financial institutions offer tools like insurance to help people and businesses protect themselves from unexpected problems. This makes it easier for them to invest their money.
Making Money Available: Banks make sure there’s enough money in the economy. The Riksbank, which is Sweden’s central bank, keeps interest rates very low—around 0%. This encourages people to borrow money for things like buying homes or starting businesses.
All of these roles help the economy grow in a strong and healthy way.
Financial institutions, like banks, play a big part in helping the economy grow. Here’s how they do it:
Helping Businesses Get Money: Banks lend money to businesses so they can invest and grow. For example, in 2020, banks in Sweden gave out over $250 billion in loans. This money helps companies expand and create jobs.
Encouraging People to Save: Banks offer savings accounts where people can keep their money safe. This helps people save more. In Sweden, families saved about 16% of their income in 2020.
Protecting Against Risks: Financial institutions offer tools like insurance to help people and businesses protect themselves from unexpected problems. This makes it easier for them to invest their money.
Making Money Available: Banks make sure there’s enough money in the economy. The Riksbank, which is Sweden’s central bank, keeps interest rates very low—around 0%. This encourages people to borrow money for things like buying homes or starting businesses.
All of these roles help the economy grow in a strong and healthy way.