Banking on traditional money motors in the Gulf | GulfNews.com:
"Even in normal times, it is because banks have a special place in any economy that their business is discussed not so much in terms of how they may perform as entities and a sector to invest in, but more as to whether and how they help deliver economic growth.
After all, they perform the role of intermediaries for the rest of the economy, all the non-financial sectors, particularly between households and corporates, between savings and investment, and between short-term deposits and longer-term employment of that funding.
Of course, this key function of matching lending and borrowing has been muddied to the point of grotesque distortion in some parts of the industry around the world, with the breaching of the division between traditional interpretations of banking on the one hand and, to some extent, speculative trading on the other. That blurring has only been mutated further by the unwelcome ability of banks of a certain size to ‘privatise profits, socialise losses’ because they are too systemically important to allow to fail."
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