The role of Banks in the economy

Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively.  The process performed by banks of taking in funds from a depositor and then lending them out to a borrower is known as financial intermediation. Through the process of...

You are here Understanding Bank Credit & its Importance

It is now an indisputable fact that economies are dependent on their growth and development on the provision of credit by the various financial sector players and credit associations. Corporates, individual and other players provide credit to one another with the banks lying at the centre of the system. A...

Understanding the concept of bank credit

In banking, Bank credit refers to the amount of funds that  individuals or businesses are able to borrow from one or more lending institutions. In effect, it is a measure of how much in the way of cash loans may be issued, based on the credit history and the assets...

Unlocking Resources through Value Chains

A value chain consists of a series of activities that add value to a final product, beginning with the production, continuing with the processing or elaborating of the final product, and ending with the marketing and sale to the consumer or end user. The inter-dependent linkages of the chain and...

Why a stable financial system is a prerequisite

In every economy, it is fundamental to have a sound, stable and healthy financial system to support the efficient allocation of resources and distribution of risks across the economy.  Financial instability and its effects on the economy can be very costly because of the associated contagion or spillover effects to...

Women Groups key in Savings Mobilization

The contribution of women to economic development is well documented. Yet there exists several barriers to the full optimization of women’s economic potential. Reasons commonly cited range from cultural, religious, traditional, and legal discrimination amongst others.Access to Finance is often cited as one of the major factors impeding the growth...

10 Easy Money Saving Tips, How To Boost Your Savings Account

Most of us are finding it incredibly difficult to save money. We have somehow resigned ourselves to the belief that somehow, for one to save money you must have a lot of income or spare cash. Whilst is generally true that one’s propensity to save increases with disposable income, it...

Equity First…. Innovative ways of raising funding for your small business

Turning an idea into a viable business requires money. But in this environment where liquidity is tight, how can you raise liquidity to fund your small business so that it grows. Most people kill their business ideas by making simple but lethal mistakes in mobilizing the wrong kind of money.  For...

Addressing the Financial Exclusion Challenge

When was the last time you really planned your finances a few months ahead? Recently? Maybe not. The honest truth for most of us urbanites is that we rarely do, and yet for the most part, we have the privilege and access to the tools to do so. It is true...

Choosing an Appropriate Savings Strategy

Saving money is necessary for ones financial well being. Savings come in handy on a rainy day, they provide a financial cushion for unforeseen contingencies. There is nothing worse than having an emergency in the home, be it an illness, bereavement and so on, and you have nothing to cater...

Choosing The Right Savings Products From Your Bank

Whether one is saving at the household, individual or firm level it is important to appreciate the reasons and benefits of accumulating such savings. Saving normally reflects optimization behavior by economic agents as they anticipate increased consumption in the future whilst deferring present consumption. Saving is therefore necessary for the well...

Harnessing the Informal Sector through Financial Inclusion

The rapid informalisation of the economy during the hyperinflation years as the country de industrialized and formal jobs were lost has necessitated a major transformation of how business in Zimbabwe should be done going forward.According to a Government PICES (Prices Incomes, Consumption and Expenditure Survey 2012), report , whilst unemployment...

How to Get Maximum Value from Your Bank

The traditional Bank and customer relationship is perhaps one of the most treasured relationships by the bank. Banks take relationships with their clients so seriously to the extent that they will invest resources to create the relationship and to maintain it. However, unfortunately sometimes it appears that after the relationship...

Record Keeping Basics for SMEs

How do you tell if your business is making a profit or a loss if you are not keeping any records? Most of our small business owners unfortunately perhaps take record keeping for granted, but it can make the difference between success and failure in business.SME business owners need to...

Revenue Enhancing Measures: BAZ Perspective

1. Plugging the currency leakagesReview the import tariffs on variety of goods (all finished goods coming into the country which can be produced locally should be charged an exorbitant duty). Government should strike a balance between encouraging local production and consumptions against imports.Anti- dumping tariffsUnderstanding the sources of revenue of...