A Review of the Literature on Banking and Financial Institutions

Abstract

This literature review examines the role of banking and financial institutions in economic development, summarizing key findings, methodological approaches, and implications for practice. Through a comprehensive search of major academic databases, 24 peer-reviewed articles published between 2006 and 2021 were identified and categorized into five themes: banking performance, customer satisfaction, financial stability, innovation in banking, and the role of banks in economic development. Key findings include the significant correlation between bank performance indicators (such as interest margin, return on assets, and lending capacity) and economic growth, the determinants of customer satisfaction, the impact of bank lending practices on financial stability, the importance of innovation in banking, and the challenges faced by banks during economic crises. This review provides valuable insights for policymakers, economists, and industry practitioners to develop effective strategies and policies that promote sustainable economic growth and financial stability.