Group banking is a type of banking system where a group of people come together to avail banking services. In this system, a group of individuals with similar financial needs and goals form a group and open a joint bank account. The group members contribute a certain amount of money into the account on a regular basis, and the bank provides them with various financial services.

Advantages of Group Banking
Group banking offers several advantages to its members, including:

1. Easy access to financial services: Group banking provides easy access to financial services to its members, especially those who do not have access to formal financial institutions.

2. Lower transaction costs: Group banking reduces transaction costs as members can share the costs associated with banking services.

3. Improved savings: By pooling their resources, group members can save more money and achieve their financial goals faster.

4. Improved credit access: Group banking also improves credit access for its members as they can collectively apply for loans and access credit services.

Process of Credit Creation
Credit creation is the process by which banks create credit or money by lending to borrowers. The process of credit creation involves the following steps:

1. Banks accept deposits from customers, which are recorded as liabilities on their balance sheets.

2. Banks use these deposits to make loans to borrowers, which are recorded as assets on their balance sheets.

3. When a bank makes a loan, it creates new money by crediting the borrower's account with the loan amount.

4. The borrower can then use this new money to make purchases or pay off existing debts.

5. As the borrower spends the new money, it flows through the economy, creating a multiplier effect and stimulating economic growth.

Conclusion
In conclusion, group banking is an effective way of providing financial services to individuals who do not have access to formal financial institutions. It offers several advantages to its members, including easy access to financial services, lower transaction costs, improved savings, and improved credit access. Credit creation is the process by which banks create new money by lending to borrowers, which helps stimulate economic growth.