The Banjan

The term debt when used by corporations is commonly referred to as leverage. According to the Oxford dictionary, leverage is the use of debt(borrowed capital) to undertake an investment or project. When one refers to a company, property, or investment as ‘’highly leveraged’’, it means that the item has more debt than equity. The term is hardly used when reference is made to retail or consumer lending. When an individual borrower is accessing credit, reference is only made to the level of indebtedness and not leverage since equity or capital does not apply. Taking on good debt should not be a source of concern as long as the decision was well-thought-out. It is bad debt that every client should strive to avoid as there is every likelihood of ending up in default and the consequences thereof. It has to be acknowledged that all human beings both educated and illiterate have got some level of credit skills because they at one time or another will make a lending or borrowing decision. This

Despite several attempts at cover-up, it is emerging clearly that Ethiopia is in the grip of a civil war. After several months of fighting secessionist forces in the Tigray region, the country`s economy has been battered, many people displaced and a looming humanitarian crisis is inevitable. Across the world, media pictures of thousands of government troops captured by the Tigray Liberation force amidst reports that the government has withdrawn its forces from the rebellious region have been beaming. This is shattering to the aspirations of a country that in the recent past has been one of the fastest-growing economies on the African continent. Recently while addressing parliament the Ethiopian Prime Minister Ahmed Abiy was blunt on the way forward. He came to power on a platform of reform, and courtesy of this, the country has witnessed liberalization in its economic policies and increased democratic space. The Prime Minister said that the country had lost infrastructure worth about U

Do not get caught up in the crazy maze created by marketers as they seek to woo bank clients. Make a sober choice. Here below are some useful tips. The main business of banks is to act as financial intermediaries. This involves the taking up of deposits from savers at a cost paid to the depositor in the form of an agreed rate of interest while using the same to issue credit products to the borrower at a higher rate of interest. According to the regulatory authority, banks do not keep fixed assets on their balance sheet, though in the course of their business they take into custody asset titles and charge them as loans security. There has been a lot of innovation in this industry lately but the core business remains credit-issuing alongside other services such as the support of trade finance, advisory, custodial, and now banc assurance services just to mention a few. It is for this reason that bank accounts are mainly recognized for serving two key purposes i.e. Savings-interest earning