Strengthening basic economic literacy
Basic financial literacy for media practitioners
A workshop hosted by the Bankers Association of Namibia on finance for non-financial managers highlighted some of the fundamentals of finance and the Namibian economy.
The workshop took place at Am Weinberg in Windhoek, with the primary aim of equipping media practitioners with basic financial literacy and framing the narrative of finance within the country.
Chief economist at Capricorn Asset Management, Floris Bergh spoke on the fundamentals and functions of an economy. He grouped the workings of the economy in three areas.
The first focused on the real economy, which includes gross domestic product (GDP) and how firms perform and evaluate the status of the consumer.
The second focused on financial aspects which include money supply, credit growth, balance of payments, currency regime and exchange rate.
The third area discussed policy-making, where he distinguished between macroeconomic policy as contained in monetary policy and fiscal policy.
“We also looked at the asset markets around the investments, savings, money and capital markets, equity markets as well as property markets. These play a big role in how people perceive the development of their wealth situation,” Bergh said.
The role of banks
At the workshop, head of retail banking at Bank Windhoek, James Chapman, shared a presentation on the role of banks. He highlighted that banks play a fundamental role in the growth of the economy, underpinned by financial remediation.
Amongst other roles of banks, Chapman emphasised that a bank’s primary role is to take in funds (deposits), pool them and lend them to those who need money.
Due to this primary role, he said it is vital that banks maintain healthy financial positions and generate profits to: Continue supporting economic growth; provide adequate returns for investors and instill the confidence of depositors and clients.
He added that regulators such as the Bank of Namibia play a critical role in overseeing the monetary system and ensure financial stability and credibility.
The workshop took place at Am Weinberg in Windhoek, with the primary aim of equipping media practitioners with basic financial literacy and framing the narrative of finance within the country.
Chief economist at Capricorn Asset Management, Floris Bergh spoke on the fundamentals and functions of an economy. He grouped the workings of the economy in three areas.
The first focused on the real economy, which includes gross domestic product (GDP) and how firms perform and evaluate the status of the consumer.
The second focused on financial aspects which include money supply, credit growth, balance of payments, currency regime and exchange rate.
The third area discussed policy-making, where he distinguished between macroeconomic policy as contained in monetary policy and fiscal policy.
“We also looked at the asset markets around the investments, savings, money and capital markets, equity markets as well as property markets. These play a big role in how people perceive the development of their wealth situation,” Bergh said.
The role of banks
At the workshop, head of retail banking at Bank Windhoek, James Chapman, shared a presentation on the role of banks. He highlighted that banks play a fundamental role in the growth of the economy, underpinned by financial remediation.
Amongst other roles of banks, Chapman emphasised that a bank’s primary role is to take in funds (deposits), pool them and lend them to those who need money.
Due to this primary role, he said it is vital that banks maintain healthy financial positions and generate profits to: Continue supporting economic growth; provide adequate returns for investors and instill the confidence of depositors and clients.
He added that regulators such as the Bank of Namibia play a critical role in overseeing the monetary system and ensure financial stability and credibility.
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