Banks can contribute to inequality in several ways, and while they are often viewed as essential for economic growth, their operations and practices can exacerbate disparities within society. Here are some ways in which banks promote inequality
The rich have deep roots with banks and own real estates and other assets which they use as security for loans. This is not available to the poor section of our community. This is the same situation with large companies which are well established. It is easy for them to raise finances required to expand their businesses. These loans make it possible for the rich people in the society to invest in capital goods when the economy is doing well (boom).
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