A STUDY ON THE KIND OF INVESTMENTS UNDERTAKEN BY COMMERCIAL BANKS, INSURANCE COMPANIES AND PENSION FUNDS

Abstract

Research in financial services reveals that financial intermediaries make up an essential and major part of the country’s financial system providing various financial services. In a country such as Zambia Commercial banks, insurance companies and pension funds undoubtedly make up more than 50% of the financial intermediaries in the country. This article is focused on discussing the description, features and functions of insurance companies, pension funds and commercial banks and the role they play to the country’s financial system. Furthermore the conclusion and recommendations highlights the kind of investments insurance companies, pension funds and commercial banks undertake based on their nature and the kind of activities they engage in.

The information in article is entirely collected through secondary research, specifically from scholarly articles in banking and finance, various text books in banking and finance and journals from professional bodies such as the Zambia Institute of banking and financial services (ZINFS). The paper’s main focus is on the description, features, roles and the kind of investments undertaken by insurance companies, pension funds and commercial banks with emphasis on Zambian institutions, although are citations are made from other countries on the continent of Africa.