Banking and finance were invented by the capitalist system. This is a fact. But another fact is, these two produce instruments to prevent all economic activity from being controlled and profited by a select few. One of these instruments is credit.
Autocratic governments seek to control economic activity with the help of a few large business groups. Democratic governments, on the other hand, allow a lot of various companies competing on equal terms to participate in the economy. Obviously, an economic climate where personal interests do not come before the interests of society, companies compete fairly under the protection of the rule of law to create added value and contribute to the society is much better than an economic climate run by a few privileged people. And this can only be achieved by liberal democracy, which embraces the rule of law to enhance the rule of the people.
The instrument of credit, which can help talented and intelligent people, having a good idea but lacking capital, to set up a business and compete, should be provided without being under any political pressure. By doing so, we will have produced not only monetary profit but we will also have contributed to the society, helped individuals to be self-sufficient, and make the right decision for themselves of their own free will. Of course, in the process, the government would want to support and encourage some activities in accordance with future needs. This support and encouragement are not provided directly by the government but by the regulatory authorities. The government conducts “economic impact analyses” to understand whether its plan or approach has been successful or not, whether the purpose has been achieved or not. However, if it allows trade, finance, banking, industry, and all other economic activities to continue on their own without running any impact analysis, so as to satisfy the desires of interest groups, ordinary citizens will pay the price for such irresponsibility.
Providing loans, which is a very limited resource, to firms or individuals who are expected to generate economic benefits under fair competition would also help strengthen democracy. Thus, enterprises can grow both their savings and capital. Such just conduct and just practices will have a positive impact on sports, arts, culture, and a well-planned healthcare and education and will also increase the number of self-sufficient individuals.
I hope I was able to help you understand what a major responsibility bankers and financiers have when they distribute funds. Perhaps we ought to think again how important these activities, that have become just daily tasks for them, actually are for all of us.