Importance of Banks in the economy

Importance of Banks in the economy

It goes without saying that the banking sector is one of the most important industries that drive the economy. The banking sector has a huge role in the health of the economy of a country. Banking is an industry that handles cash in the form of deposits and loans or any form of credit. Banks provide liquidity to businesses and households for future investment purposes. Banks enable businesses to run smoothly by offering loans that cut down the delay in operations. Bank loans help households to fulfill future plans like getting an education, buying a home or a car, etc. In a way the role of banks keeps the economy running by keeping the demand alive.

The banking sector is a popular choice among people who want to invest their money. Investors can invest their money in the financial instruments offered by the bank itself, or invest in the stocks of the bank. Either way, it is a good choice for an investor’s portfolio. There are two types of banks; commercial banks and retail banks. Commercial banks offer their services to private individuals and businesses, while retail banks cater to the need of families and individuals by providing credit, deposits, and money management solutions.

If you are looking to invest in stocks of banks in America, have a look at Ameris Bancorp. This company pirates as the bank holding company for Ameris Bank. This bank provides commercial and retail services to customers primarily in Georgia, Alabama, Florida, and South Carolina. Ameris Bancorp has five divisions: Banking, Retail Mortgage, Warehouse Lending, SBA, and Premium Finance division. Ameris Bancorp was founded in 1971, in Moultrie, Georgia. This company is listed on the Nasdaq index with the symbol ‘ABCB.’

Ameris Bancorp (NASDAQ: ABCB at https://www.webull.com/quote/nasdaq-abcb) was trading at $25.75 before the Covid-19 was declared a pandemic by WHO. Since the pandemic status, the stock has been trading at $22.42, which is 12.9% less than before. Wall Street Analysts have issued their ratings and are recommending investors to buy this stock. The company has announced the result of the first quarter of 2020 and reported EPS of $0.56 per share, which is less than estimated by analysts. According to the price target set by analysts, the NASDAQ: ABCB stock should reach the stock price of $34.50 in the next 12 months.

Ameris Bancorp has a market cap of $1.56 billion. Its CEO is MR. Dennis J. Zember Jr. Some key competitors of Ameris Bancorp are Trust Financial, First Republic Bank, Fifth Third Bancorp, M&T Bank, KeyCorp, Prosperity Bancshares, East West Bancorp, TCF Financial, etc.  You can check more stock news before online stock trading. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.