An introduction to banking and other financial institutions.

1. Banking
By: Jane Bweendo
Zambia College of Distance Education (ZACODE)

2. What is Banking
Banking is a business activity which involves;
 accepting and securing money
 lending money
 Earning a profit.

3. Bank
A bank is a financial institution which;
 accepts deposits
 lends out money (loans and overdrafts).

4. Banking Services
 Accept and safeguard money and other
valuables
 Lends money to customers
 Provide Automatic Teller Machines (ATMs)
 Issue debit and credit cards
 Transfer funds electronically within and
outside the country.

5. Financial Institutions
 A financial institution is any establishment that
deals with financial transactions or services.
 Financial transaction services include
investments, loans and deposits.

6. Types of Financial Institutions
 Commercial Banks
 Central Bank
 National Credit and Savings Bank (NATSAVE)
 Building Societies
 Insurance Companies
 Micro Finance Companies
 Credit Unions and Credit Associations
 Bureau De Change

7. Commercial Banks
Commercial banks are financial institutions that;
 provide services to business organizations
and individuals for profit.
 are usually listed companies on the stock
exchange.
 are managed by a board of directors.

8. Examples of Commercial Banks
 Barclays Bank
 Zambia National Commercial Bank
 Standard Chartered Bank
 Finance Bank Zambia Limited
 First National Bank (FNB) Zambia Limited
 Indo Zambia Bank
 Eco bank Zambia

9. Central Bank
A central bank is a country’s national bank
responsible for:
 Issuing, controlling and regulating money in the
country.
 Creating and implementing monetary policy
 Acting as a banker’s bank
 Managing and controlling foreign currency.
 Government advisor on financial matters.

10. Services offered by Commercial
Banks
Services offered by commercial banks include;
 accepting deposits (through current deposits
and saving accounts)
 giving out loans to businesses
 offering investment and business advice.
 paying out interest on deposits and
investments

11. Building Society
A building society is a financial institution that;
 receives deposits from the public, through fixed
and savings accounts just like commercial banks.
 provides loans (mortgages) to people who want to
invest in real estate, that is, those who want to
buy, build, renovate houses and buildings.
 are not profit making organisations.

12. Examples of Building Societies
Examples of building societies in Zambia
include the following:
 Zambia National Building Society (ZNBS)
 Pan African building society
 Finance Building Society

13. Micro Finance Companies
Micro finance companies specialize in providing
banking services to ;
 low income groups and individuals
 mainly poor people who cannot access
banking and related services from commercial
banks.

14. Examples of Micro Finance
Companies
 Bayport Financial Services
 Unity Finance Ltd
 Izwe Loans Zambia Ltd
 Micro Bankers Trust
 Micro Credit Foundation Ltd
 Blue Cash Express Ltd
 Zampost Micro Finance Ltd
 Get Started (GS) Advance

15. National Savings and Credit Bank
(NATSAVE)
NATSAVE is a government owned financial
institution established in 1972 by an act of
parliament to:
 promote national savings
 offer loans including micro and salary related
loans
 offer money transfers
 accept deposits
 issue savings certificates which are paid with
interest

16. Credit Unions and Credit
Associations
Credit union and savings associations are
financial institutions which;
 are owned and controlled by people who use
their services and have a common goal.
 encourage members to save and invest in
profitable ventures.
 are aimed at improving the standards of living
for members.

17. Bureau De Change
A bureau de change is a financial institution that
deals in exchange of one currency for another.
For example us dollar for Zambian kwacha up
pound etc.

18. Examples of bureau de changes
 Barclays bank bureau de change
 Unifinance bureau de change
 Billion bureau de change
 Becky bureau de change
 CFB Bureau change

19. Conclusion
 Financial institutions are establishments that
deals with financial transactions such as
investments, loans and deposits
 They include commercial banks, building
societies, micro finance companies and credit
unions.