Nationalization of banks

Nationalization of banks occurs when the government takes control of privately owned banks and makes them part of the public sector. This process is usually done to protect the economy, ensure financial stability, or extend banking services to underserved areas. When a bank is nationalized, its ownership shifts from private individuals or companies to the government, which then manages its operations. The goal is often to safeguard public interests, prevent bank failures, and promote economic growth. It is a strategic move that changes the bank's decision-making from private profit motives to serving the broader public interest.