BANKING

BANKING 
Definition: 
Bank is a financial institution that is licensed to accept deposits, provide credit and offer other financial services.
Banking refers to the business activity of accepting and safeguarding money owned by other individuals and entities and lending it to earn profits.
History of Banking in Kenya
Banking in Kenya started in the year 1966 when the central bank of Kenya was established. Hence the start of other commercial banks, the cooperative bank of Kenya was the first to be established in 1968. Its aim was to promote and serve needs of growing farming communities.
Importance of Banking 
Financial security: Banks provide safe and secure way of storing our money reducing theft and loss risks. 
Financial intermediation: bank acts as intermediary between depositors and borrowers, channeling funds from savers to those in need of capital for various purpose.
Banks plays a central role in transmitting monetary policies from the government to the public 
Currency circulation: banks facilitate the circulation of currency, ensuring an effective medium of exchange and contributing to smooth functioning of the economy.
Financial stability: through risk management practices and regulatory frameworks, banks contribute to the overall stability of the financial system protecting the interest of depositors and investors.
Global trade facilitation: international banking services facilitate cross-border transactions, trade finance and foreign exchange, promoting economic integration.
Payment services: banking facilitates smooth and secure transactions, enabling individuals and businesses to make payments, transfer funds and conduct financial transactions efficiently  
Risk management: Banks offer financial products and services that help business manage risk such as insurance against unforeseen events or hedging against currency fluctuations 
Financial education: through services like financial advisory and literacy programs, bank contributes to improving financial knowledge and responsible money management among the public
Infrastructure development: banks often fund large-scale infrastructure projects, contributing to economy development and improving the overall quality of life in communities.

Last week the court declared housing levy unconstitutional.
Does this affect demand curve, supply curve or both 
Do the curves affected move to the right or left
How will the market adjust to balance or return to equilibrium.

It affects both demand curve and supply curve
Scenario 1
Employees will retain the salary that would have been deducted hence the demand curve will shift to the right making them increase their purchasing power since they will have more disposable income.

The supply curve will be affected in that there will be a decline in the supply of building materials making the supply curve to shift to the left.

The excess demand of goods and services DD to D1D1 with constant supply will force the price to slightly increase from P to P1 creating a new equilibrium at E.