1.4 Banking

• The meaning of banking
• The importance of banking in an economy
• Types of bank account
• Ethical and unethical practices in banking
• Trends in banking in Kenya
• Opening a bank account

• explain the importance of banking in an economy
• analyse the types of accounts offered by banks
• explore the ethical practices in banking
• describe the trends in banking in Kenya
• appreciate the role of banking in an economy

“Why are banks important in an economy?”

“What are the ethical practices in banking?”

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1. The importance of banking, and types of account
   40 min · 1 practice tasks · quiz
   What banking is, why banks matter to an economy, and the main types of account a bank offers.
2. Ethics in banking, and modern trends
   40 min · 1 practice tasks · quiz
   Ethical and unethical practices in banking, why they matter, the changes transforming banking in Kenya, and opening an account.
3. What banking is
   40 min · 1 practice tasks · quiz
   Banking is licensed work of taking deposits, lending and moving money - not a suitcase under a bed.
4. Commercial banks in Kenya
   40 min · 1 practice tasks · quiz
   A commercial bank serves the public for profit: deposits, loans, payments and agency work, under CBK.
5. The Central Bank of Kenya
   40 min · 1 practice tasks · quiz
   CBK is the bank of banks: it issues the shilling, serves the government, supervises banks and steers monetary policy.
6. SACCOs in Kenyan banking
   40 min · 1 practice tasks · quiz
   A SACCO is a member-owned savings-and-credit cooperative. It is not a commercial bank, but it is how many Kenyans save and borrow.
7. Operating a savings account
   40 min · 1 practice tasks · quiz
   A savings account keeps money, pays some interest, and limits how often you take it out - the right starter account for a student.
8. Current accounts, cheques and overdrafts
   40 min · 1 practice tasks · quiz
   A current account is for frequent payments. It may offer a cheque book and an overdraft - useful to a trader, costly if abused.
9. Fixed deposits and other accounts
   40 min · 1 practice tasks · quiz
   Lock a lump sum for higher interest, or choose joint, foreign-currency or business accounts by the job they must do.
10. Bank services beyond the account
    40 min · 1 practice tasks · quiz
    Loans, standing orders, EFT and RTGS, cards, foreign exchange and safe custody - the services that sit on top of an account.
11. Opening a junior savings account
    40 min · 1 practice tasks · quiz
    Fill a junior account form honestly: identification, photographs, a small deposit, a guardian, and KYC.