Business / Economy
Zimbabwe bank deposits rise to $4 billion
28 May 2012 at 09:57hrs | Views
Deposits in the entire Zimbabwean banking sector rose to $4 billion this month from $3,3 billion in January amid calls by the Reserve Bank of Zimbabwe (RBZ) for more lending to the countrys small-to-medium enterprises (SMEs).
Presenting oral evidence before a Parliamentary Committee on SMEs, RBZ governor Gideon Gono last week said the country's financial services sector had loaned out $2,8 billion by mid-May out of the total deposits.
The central bank chief urged lawmakers to craft a harmonised law that encouraged growth of small enterprises after it emerged that 5% of the total loans advanced during this period went to SMEs.
Gono said his forthcoming monetary policy statement expected in July would tackle bank charges, which had been criticised for discouraging deposits into the formal banking sector.
This comes after a survey commissioned by the Finance ministry revealed that 33% of the population does not save money due to limited banking products and high bank charges.
The survey also showed that a third of Zimbabwe's population are between the ages of 21 and 30 and require viable economic activity to eke out a living.
"As at May 18, the total loans that were extended to SMEs by the various institutions amounted to
$164, 4 million," Gono said.
"That is what is out there supporting the SMEs. Out of total loans that stood at $2,8 billion $164 and 4 million accounts for 5% of the total loans," said Gono.
If 40% of the total population is below the age of 30 and we do nothing in terms of creating an enabling environment for them to find a source of livelihood, then we are sitting on a time bomb and we will not escape responsibility of what will come out of that.
Presenting oral evidence before a Parliamentary Committee on SMEs, RBZ governor Gideon Gono last week said the country's financial services sector had loaned out $2,8 billion by mid-May out of the total deposits.
The central bank chief urged lawmakers to craft a harmonised law that encouraged growth of small enterprises after it emerged that 5% of the total loans advanced during this period went to SMEs.
Gono said his forthcoming monetary policy statement expected in July would tackle bank charges, which had been criticised for discouraging deposits into the formal banking sector.
This comes after a survey commissioned by the Finance ministry revealed that 33% of the population does not save money due to limited banking products and high bank charges.
The survey also showed that a third of Zimbabwe's population are between the ages of 21 and 30 and require viable economic activity to eke out a living.
"As at May 18, the total loans that were extended to SMEs by the various institutions amounted to
$164, 4 million," Gono said.
"That is what is out there supporting the SMEs. Out of total loans that stood at $2,8 billion $164 and 4 million accounts for 5% of the total loans," said Gono.
If 40% of the total population is below the age of 30 and we do nothing in terms of creating an enabling environment for them to find a source of livelihood, then we are sitting on a time bomb and we will not escape responsibility of what will come out of that.
Source - newsday
