Business / Economy
Zimbabweans shunning local banks: Nyambirai
23 Apr 2011 at 18:01hrs | Views
Tawanda Nyambirai, the chief executive of TN Holdings group has castigated
Zimbabweans for shunning local banks and preferring to open accounts
with foreign owned banks.
Nyambirai admitted that local banks were struggling due to less clients compared to the foreign owned banks. He told Captains of Industries that even big co-operatives headed by local people prefer to bank with foreign owned banks.
He said this disparity had contributed to local banks failing to give loans to Zimbabweans as they did not have the cash as most of their clients are those that immediately withdraw their money as deposits are made.
TN holdings founder also moaned the absence of a functioning central bank saying the Reserve Bank of Zimbabwe (RBZ) is not performing its role of "lender of the last resort" hence manufacturing and struggling Zimbabwean companies after failing to access loans from banks have nowhere else to turn to.
He advised that for companies to stay afloat, they need to re-strategise adding that companies had to look for alternative ways of raising capital giving an example of groups pulling their resources together.
Captains of Industries complained about the lack of capital to inject into their businesses and said they were worried with the culture of banks of no longer giving interests to clients but instead ate from people's savings.
Nyambirai admitted that local banks were struggling due to less clients compared to the foreign owned banks. He told Captains of Industries that even big co-operatives headed by local people prefer to bank with foreign owned banks.
He said this disparity had contributed to local banks failing to give loans to Zimbabweans as they did not have the cash as most of their clients are those that immediately withdraw their money as deposits are made.
TN holdings founder also moaned the absence of a functioning central bank saying the Reserve Bank of Zimbabwe (RBZ) is not performing its role of "lender of the last resort" hence manufacturing and struggling Zimbabwean companies after failing to access loans from banks have nowhere else to turn to.
He advised that for companies to stay afloat, they need to re-strategise adding that companies had to look for alternative ways of raising capital giving an example of groups pulling their resources together.
Captains of Industries complained about the lack of capital to inject into their businesses and said they were worried with the culture of banks of no longer giving interests to clients but instead ate from people's savings.
Source - Byo24News
