How Banking in Charlotte Contributes to Economy and Economic Growth

The banking sector in Charlotte has grown at a skyrocketing rate which has made the city to be named as one of the banking hubs not only in North Carolina but also in the United States. The banking sector has in a great way has contributed to the economy of the country as well as the increased economic development of Charlotte.

First, the various financial sectors such as security brokers, commercial banks, mortgage service providers and investment banks have found it easier to operate in Charlotte mainly because of the changes in the banking policies. Some of the banks have developed locally while some banks have entered the Charlotte market because of the incentives that are present in Charlotte. The impact of this to the economy is that so many people have been hired by the sector. Employment in the sector has positively impacted the other unrelated sectors as the demand for various goods and services has increased and the thriving of other sectors has meant the growth of the economy for Charlotte (Duke University, n.d).

The banking sector has also facilitated the incubation of business ideas that the locals have had. This is why many businesses have performed well, and their output contributes to the economic growth of the city. Small-scale businesses such as restaurants and shops have been doing well considering the support by the financial sector. These sectors have increased the incomes of the residents of the city, and this means better lives for the people (Duke University, n.d).

Apart from the local companies, there are many companies from other parts that have entered the Charlotte market because of the good banking sector. There are various Tech companies that have now settled in Charlotte because of the ease of availability of funds. Studies show that Charlotte has attracted more Tech companies as compared to Silicon Valley in the recent years because of the good economic conditions that are as a result of the good financial sector (Dobeck and Euel, 53). Many other companies have found it attractive to invest in Charlotte because it is easier to raise capital considering the good financial sector. The increase in the number of businesses in the city leads to greater demands for goods and services, and this means greater incentives for the more companies to move operations to Charlotte.

As the businesses are booming in the city, the demand for land and housing has been increasing, and this is why many houses have been refurbished and more houses constructed. This is to accommodate new businesses and people working in various business organizations in the city (Dobeck and Euel, 58).

In summary, the banking sector in Charlotte has been a major driving force in the economic development. Many people have been employed in the sector, and other related sectors, and the attraction of companies to the city has meant better business activities for the people, employment and increased incomes for the residents of the city. The benefits that are associated with the interrelationship between then various businesses have facilitated the growth of various entities both locally grown and new entrants in the Charlotte market. This has helped change the infrastructure of the city, and new opportunities continue to arise as a result of improved business activities. Generally, the banks have been crucial in facilitating the growth of other sectors of the economy, and this has improved the lives of the people in the Charlotte society.

Works Cited

Duke University. "Key Industries: Banking and Finance - North Carolina Digital History." LEARN NC, www.learnnc.org/lp/editions/nchist-recent/6179. Accessed 8 Nov. 2017.

Dobeck, Mark F, and Euel Elliott. Money. Westport, Conn. [u.a.: Greenwood Press, 2007. Print.