ROMBLON STATE UNIVERISTY-MAIN CAMPUS

ODIONGAN ROMBLON

COLLEGE OF EDUCATION

CASE STUDY ON SAVINGS CREDIT AND THE ECONOMY

MARIVIC REDILLAS

APRIL 2023
How Savings Can Save the Economy?

The economic growth of nations with higher savings rates has outpaced that of

nations with lower savings rates. By offering a second source of income for nations like

Kosovo, capital accumulation increases a country's productivity and production

prospects. Accordingly, the United Nations Conference on Trade and Development's

"Development and Globalization: Facts and Figures"2 (2004) emphasizes that the main

factor in increasing in-country capital is the increase in savings. Accordingly, developing

countries should prioritize policies that encourage domestic savings so that capital can

be invested in the most productive practices.

There is little doubt that having larger savings accounts gives consumers safety

nets to help them weather unexpected costs without getting further into debt. Having a

higher percentage of income set aside for savings also implies that living costs are

lower, which allows consumers to adapt their budgets to devote more money to higher

mortgage payments or to better prepare for job loss.

In the end, the economy recovers considerably more quickly as a result of its

capacity to cope with financial adversity. After all, the banks, utilities, and grocery stores

may all continue to operate, keeping their doors open and their staff members

employed.

Credit on Economic Growth

It is a matter of common knowledge that any economy, no matter how advanced,

cannot develop in the absence of credit. When we reflect on the shift to a market
economy, we see that credit policies have suffered as a result. Credits are necessary

for the Romanian economy to be able to generate new projects and be revivified with

currency. The specific manner in which the expansion of credit affects economic growth

is simple to understand. Consumers and businesses can borrow more money and

spend more when credit is available to them. An increase in investments and

consumption generates jobs and boosts revenue and profit. Additionally, the expansion

of credit affects asset prices, raising their netto value. Due to the increase in wealth

brought about by rising asset values, the owner has the opportunity to borrow additional

money.

Savings, Credit and the Economy

The story of Catalina and Tammy appeals to our society today, because a lot of

people resort to credits in order to start earning. There are a lot of micro finances that

are appearing who let the people borrow money and can also save up for their

insurance just like the CARD MRI. We may question where those micro finances get

their funds, how they are able to provide such amount to the borrowers and how do they

earn from lending. There are a lot of people who saves up money in the bank and even

in small micro finances and that money multiply as the time passes by and in order for

the lenders to earn more they even put it into lending as it will double up. As we can all

see in money everything is a cycle, it will start small until it will grow up. We save and

deposit money the bank or the micro finance will use it to lend for the borrowers and

they will put up higher amount of interest which will be their income and that will also be

utilized for the growth of the economy. And as our economy prospers the society will
have no shortages and there will be no major problems that may arise concerning

money and finances.

This cycle tells us that we should really cooperate on how our society runs. A

cycle that has no end and no matter how far and long we go the prosperity of our

economy lies in our hands. The way we utilize money and the way we handle our

finances tells us what will happen to our economy, our economy runs because of money

and the money comes from us which is why the more money we can input in the

economy the greater the success we can have.

Executive Summary

Savings, credits and the economy is a cycle where money is the main factor why

it runs. The cycle of the economy also focuses on the people, the people bring and

borrow money and the money that enters will serve as the factor that will determine if

our economy will boost or not. Savings, credit and the economy will always be related

as they evolve in order to create gain and create a living.

 REFRENCES

https://www.investopedia.com/financial-edge/0310/savings-are-a-blessing-in-a-slow-

recovery.aspx

www.sciencedirect.com/ImpactofCreditonEconomicGrowth

https://doi.org/10.1186/s13731-020-00140-6