Investigating the Impact of Bank Charges on Disposable Income: Case of Fnb Namibia Holdings and Bank Windhoek

THE INTERNATIONAL UNIVERSITY OF MANAGEMENT

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Project Report on

Investigating the impact of bank charges on disposable income: Case of FNB Namibia Holdings and Bank Windhoek  

Submitted to the Department of Finance Management

In

        Academic Year 2015        

Bachelor Honors Degree in Finance Management

Student Name: Lukas K Amupanda

Student No: 130000981

4th year

Supervisor: Mr Immanuel Michael Matsuib

Declaration

I, Lukas Amupanda declare that this project is my own original work, and that all sources have been accurately reported and acknowledged, and that this project has not been previously in its entirely, or in part been submitted at any academic institution in order to obtain an academic qualification.

Signed: L. Amupanda        

………………………….                                                        

Abstract:

Namibian financial system comprises the Bank of Namibia as the central bank and four commercial banks. This research is concerning about investigating the impact of bank charges on       disposable income. It concentrated on First National Bank and Bank Windhoek on how their bank charges affected their customer’s income. The researcher uses the colour coded questioners in order to differentiate the FNB holding bank and Bank Windhoek questions in contacting the research. The researcher has asked the permission to interview the bank employees and customers to the bank manager. The data analysis has been designed by the computer programmes in order to draw up a well presentable figures and tables for the research to be presentable and useful to the financial officer like Ministry of Finance, Bank of Namibia and to the society at large. 

Acknowledgements:

A great many people have contributed to this research. Mariza Herlter the banch manager of Bank Windhoek Capricorn department of marketing and J.Pruett marketing director of FNB Namibia has once again created many fine supplements; their recommendations to this research have been invaluable and all the FNB and Bank Windhoek Account holders too. The Researcher’s fellow students are also honored on their contribution to this research project. Mr Immanuel Michael Matsuib have performed the herculean task of working out the editors who oversaw the entire project from start to finish, in order to reaching the solutions for the research.

Brief  Contents

TITLE                                                                                                                               PAGE

CHAPTER 1 Research Background                                                                1

CHAPTER 2 Literature Review                                                                5

CHAPTER 3 Research Methodology and Design                                                10

CHAPTER 4 Presentation and Data analysis                                                15

CHAPTER 5 Findings, Recommendations and Conclusion                                        29

APPENDIX                                                                                         31

    Table of Contents

CHAPTER 1        1

1.1 INTRODUCTION        1

1.2 BACKGROUND        2

1.3 Statement of problem        3

1.4 Objectives of the study        3

1.5 Research questions        3

1.6 SIGNIFICANCE/IMPORTANCE OF THE STUDY        3

1.7 DELIMITATIONS OF THE STUDY        3

1.8 Expectation of the study are:        4

1.9 Limitation of the study        4

1.10 ETHICAL CONSIDERATION        4

CHAPTER 2: LITERATURE REVIEW        5

2.1 INTRODUCTION        5

2.1.1 CONSUMER TRUST WELCOMES LAW CHANGES ON BANK CHARGES        5

2.1.2 NAMIBIAN COMMERCIAL BANK CHARGES ARE THE HIGHEST WORLDWIDE        5

2.1.3 CONSUMER RIGHTS DAY CELEBRATIONS ‘ON BANK CHARGES’        6

2.2 BANK CHARGES        7

2.3 DISPOSABLE INCOME        7

2.4 COMPARING AND CONTRASTING OF BANK CHARGES AND DISPOSABLE INCOME        7

2.5 THEORIES        8

2.6        THEORETICAL MODEL        8

2.7        CONCLUSION        9

 CHAPTER 3: RESEARCH METHODOLOGY AND DESIGN        10

3.1        INTRODUCTION        10

3.2        RESEARCH PHILOSOPHY AND DESIGN        10

3.3        POPULATION        10

3.4 SAMPLE        10

3.5        COLLECTION AND RECORDING OF DATA        11

3.6 MEASUREMENT INSTRUMENT        11

3.6.1 RELIABILITY AND VALIDITY        12

3.7 TREATMENT OF BANK CHARGES DATA        12

3.8 INTERPRETATION OF BANK CHARGES RESULTS        13

3.9 CONCLUSION        14

 CHAPTER 4        15

PRESENTATION AND ANALYSIS OF DATA        15