Financial Literacy and Banking

Background This article seeks to answer the question- Why it is important for the banking public to be financially literate? Financial literacy is one of the pillars of the National Financial Inclusive strategy, and it was found out that Zimbabwe has low levels of financial literacy, albeit high general literacy levels (92%)...

The Role of Banks-Financial Intermediation

IntroductionThis article seeks to unbundle the key role that banks play in an economy which is the financial intermediation process. It is worth noting that the theories of financial intermediation were first developed by Gurley and Shaw in 1960.  Financial Intermediation defined:Financial intermediation is usually understood as a process of...

Principles of Bank Management

IntroductionThis article seeks to unpack how banks, in general, are managed. In doing so, the article starts by explaining, in brief, the balance sheet, which is a financial statement that takes a snapshot of what the bank owns (assets) and owes (liabilities) at a given moment. The key equation here...

Types of Exchange Rates

IntroductionsThis article seeks to conscientize the public on the types of exchange rates, their advantages, and disadvantages and why monetary policy authorities prefer one over the other. A country can so choose which exchange rate to use depending on the nature and characteristics of that country. It is worth noting...

Money and its Economic Functions

IntroductionThis article seeks to discuss in brief what may be deemed an easy question to answer- What work does money do? The answer to this question is simple, and in most instances, even a kindergarten kid can be able to narrate the works of money. During my primary school days,...

Is Holding on to cash still that important?

IntroductionWhen one strolls down the streets of our cities and towns, one would see people queuing at our banks to withdraw cash for them to be able to buy groceries and pay for utilities. In supermarkets, a few people are seen holding on to cash to purchase goods and a...

Promoting A Savings Culture

The Types of Bank AccountsA question is usually asked by the banking public why they are not getting interest on their accounts and the answer is not as simple and straightforward as one would assume. However, the banking public needs to understand that several factors apply that determine the interest...

The Role of Banks-Financial Intermediation

IntroductionThis article seeks to unbundle the key role that banks play in an economy which is the financial intermediation process. It is worth noting that the theories of financial intermediation were first developed by Gurley and Shaw in 1960. Financial Intermediation defined:Financial intermediation is usually understood as a process of connecting...

Unpacking Some Banking Concepts

IntroductionIt is often said that knowledge is power, and in vernacular it is often said that “kusaziva kwakafanana nokufa” or put in Ndebele “ukungazi kufanana lokufa”. These are the sentiments that are normally put across when one is exposed to certain knowledge, he /she was not subjected to. It is...

Unpacking Some Basic Bank Concepts Part 11

IntroductionThis article is a continuation of last week’s article which seeks to define and explain some basic key terminologies often used by monetary and fiscal authorities. Various indicators are used to measure the economic and financial sector performance of an economy and understanding these key indicators is of paramount importance...