Saturday, March 20, 2010

A Bank is Just a Depository Institution

A bank is a business unit that holds deposits. Banks build goodwill over time as trusted depository institutions. One deposits their money in whomever they trust.

In India today, I was watching a businessman talking about the future of banking, on how statistics show that the new middle class in India prefers to deposit their money in locally owned banks rather than foreign banks like HSBC or Barclays. There is no law forcing them to do this, there is no law forcing HSBC, Barclays or Standard Chartered to give up their stakes to locals, rather the locals themselves chose to trust their own, hence moving deposits to Indian controlled banks because they trust their kind. It took over half a century of getting rid of the colonial mindset, but India has got rid of it, the Westerner can not create wealth for you. The Westerner in general is a bad partner, who places the material over everything else. Take Microsoft, it has a new program, Windows 7, the new word program Microsoft Works word processor is not compatible with the old Microsoft word document. This is done on purpose so that one keeps spending. Yet Microsoft is admired by every Westerner, when a society admires thieves, there is a problem. The Indian and Chinese have seen through the illusion, only a fool can trust a thief, but the thief needs massive propaganda to say actually its just business. But one does not need to steal from a thief that makes one worse than the thief. Open your own bank and find your own customers. A thief in most cases will not allow competition, like the Canadian banks, but in Africa, the depository institutions are dominated by colonial set ups, don’t steal from them just deposit money in your own institutions, if you can not trust another African then the colonial programming has been successful.

Gono, the Zimbabwean Reserve bank governor has at last seen some light. You can not demand Barclays to give any stake to anybody, apply for a banking license and it will be 100% owned by Africans, if people believe in themselves they will move their deposits from Barclays and Standard Chartered to locally owned banks, that is fair. If one is so colonially damaged and believe knowledge comes from a Westerner, then, The Canadians, English, Australians, Germans are laughing their heads off, that means they can do anything to a bunch of fools. One will end up believing a white Canadian can come and clean their water for them, sheer nonsense.

Build up your institutions and be proud of them, stealing can not make one proud, arrogant because of the free money, but proud, I doubt it. Zimbabwe does not need to take even 1% from the colonial banks, Zimbabweans should build up their own banks. On that score Mugabe proves that he believes Africans can not do anything except take from a white, from a Westerner, that Africans can only survive by stealing from a thief., he should listen to his governor, he is there to give advise.

Bhekuzulu Khumalo

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Bhekuzulu Khumalo

I write about knowledge economics, information, liberty, and freedom