The Role of Banks in the Economy

Banks are literally the heart of our economy, pumping money through the entire financial

system. Here's how it works: when you deposit money, the bank doesn't

just store it in a vault. They lend it to someone buying a house or starting

a business. They pay you maybe three percent interest on your savings, but charge borrowers

eight percent on loans. That five percent difference? That's their profit.

Meanwhile, regulators like BSP watch every move to make sure your money stays

safe. So every time you swipe your card or check your balance, you're actually

part of this massive cycle keeping the whole economy alive. Your savings literally fund someone else's