Importance of Financial Literacy
Financial Literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. Improving financial literacy is a long-term behavioral change initiative. It requires a multi-faceted approach and sustained action over time to bring about gradual improvement.Financial Literacy is important, no matter...
Key Considerations Before Borrowing.
Borrowing money is a serious decision which deserves your time and consideration. Responsible borrowing can help you achieve certain goals and can improve your lifestyle. Reckless borrowing can cause serious financial problems which can affect your future ability to get a job, buy a home, or obtain any new credit...
What is unsecured loan?
Bank customers often apply for unsecured loans as a means of getting fast access to cash. Unlike mortgage finance which is normally secured by the house, unsecured loans are simply given on the borrower’s word to repay. There are always contracts to sign and papers to process, but there is...
The Role of key Players in Financial Literacy
In recent years, financial literacy has gained the attention of a wide range of major financial institutions, government agencies, grass-roots consumer and community interest groups, and other organizations. Interested groups, including policymakers, are concerned that consumers lack a working knowledge of financial concepts and do not have the tools they...
Why Banks Demand Collateral on Loans and Advances?
A secured loan is a loan that has collateral attached to it. This type of loan generally has a lower interest rate because the bank is taking a lower risk because it can collect the collateral if you default on payments. A secured loan is a good way to build...
Youth Savings and Entrepreneurship key to development
In a country currently characterized by economic slowdown, there is need for the country to adopt strategies that have the potential to uplift youth and empower them to become self-sufficient. Two of the most important strategies for youth empowerment are savings and entrepreneurship. Youth savings programs are meant to encourage...
You are here Banks: The Engine that drives the economy
Banks have come a long way from the temples of the ancient world, when they played a pivotal role in keeping empires and countries afloat. Although history has altered the finer points of the business model, the bank's purpose, for a long time, has remained that of protecting depositor’s money...
You are here Are All Financial Innovations Good?
In looking at financial innovation over time, it is natural to ask if it is good or bad. Does all innovation make us better off? This is a difficult question, because it is very difficult to measure the benefits or the costs of particular innovations at the time they are...
You are here A Case for Encouraging Youth Savings
The rationale behind the need for customized savings products for youth is straightforward: youth savings can promote asset-building, instill good financial habits in youths and improve a country’s overall gross savings rate. Understanding the needs of youth in economic development and then determining the role that finance can play in fulfilling...
Role of Banks in Strengthening International Trade
International Trade shapes our everyday lives and the world we live in. In nearly every instance that we make a purchase or sale, we are participating in the global economy. Whole products and or their component parts come to our store shelves from all over the world. Most international trade...
Savings key to National Development
Saving entails setting a fraction of income aside for future use, thereby transferring resources over time. It facilitates consumption smoothing, which is particularly important in developing countries where incomes are often at subsistence levels and falls in consumption could have disastrous consequences. Saving also allows the self-employed to accumulate funds for...
You are here Strategies of tackling liquidity problem
The notion of liquidity in the economic literature relates to the ability of an economic agent to exchange his or her existing wealth for goods and services or for other assets. In this definition, two issues should be noted. First, liquidity can be understood in terms of flows (as opposed...
The Case for Strengthening Value Chain Linkages
Economic relations of production, distribution and employment tend to fall at some point on a continuum between formal sector at one pole and the informal sector at the other, with many categories in between. Depending on their circumstances, workers and units are known to move with varying ease and speed...
The Complementary Role of Credit Reference Bureaus
A Credit Reference Bureau is an organization that gathers and maintains data on the credit history of individuals, businesses and organisations, and makes this information available to relevant users. These bureaus also collect the personal details of the borrowers including name, address, occupation and contact address. These agencies gather the...
The Role of key Players in Financial Literacy
In recent years, financial literacy has gained the attention of a wide range of major financial institutions, government agencies, grass-roots consumer and community interest groups, and other organizations. Interested groups, including policymakers, are concerned that consumers lack a working knowledge of financial concepts and do not have the tools they...