From the discussion in class and available literature, examine some of the difficulties associated with the financial system and how these challenges have been addressed by the Banks and Specialised Deposit Taking Institutions Act 2016 (Act 930). Are there any novel ways by which some of the challenges may be resolved in your opinion?
Answers
Explanation:
The process of savings, finance and investment involves financial
institutions, markets, instruments and services. Above all, supervision
control and regulation are equally significant. Thus, financial
management is an integral part of the financial system. On the basis of
the empirical evidence, Goldsmith said that "... a case for the
hypothesis that the separation of the functions of savings and
investment which is made possible by the introduction of financial
instruments as well as enlargement of the range of financial assets
which follows from the creation of financial institutions increase the
efficiency of investments and raise the ratio of capital formation to
national production and financial activities and through these two
channels increase the rate of growth……"