Banks are expected to allocate resources efficiently. They are supposed to transfer money from people who have money, but not a time or the ideas to invest, to people who have no money, but have ideas...

Banks are expected to allocate resources efficiently. They are supposed to transfer money from people who have money, but not a time or the ideas to invest, to people who have no money, but have ideas and time to invest. This means banks needs to find out who the most deserving business are and channel the money towards them.Why are banks suited to channel money to most deserving business, and at a lower cost? Explain why politicians are paranoid about banks failings.