Business / Economy
Banks to comply with govt
24 Dec 2013 at 08:38hrs | Views
Banks in Zimbabwe say they will comply with government's directive to take part in the interbank trading system aimed at solving the current liquidity crunch.
This comes after government has revealed that it will be reviving an interbank trading system next year supported by a US$100 million facility to boost capital inflows for financial institutions.
The government is concerned with challenges affecting the financial sector such as under-capitalisation, increasing non-performing loans, limited lending capacity, lack of confidence and high lending rates.
Bankers Association of Zimbabwe president George Guvamatanga told the ZBC News that financial institutions are committed to ensuring that the interbank system will build depositor confidence.
"It is really a critical policy and we hope it will be implemented to boost inflows of capital," he said.
The absence of an interbank trading system since 2009 has created challenges for several financial institutions as they have been exposed to capital challenges.
However, with the government assuring stakeholders that it will be recapitalising the Reserve Bank of Zimbabwe to resume its role as lender of last resort, it is being anticipated that the move will promote stability in the financial industry.
Of late, a number of people have expressed disappointment with the banking sector after they failed to access cash at their banks, although it is not confirmed how many institutions are unable to service their clients.
This comes after government has revealed that it will be reviving an interbank trading system next year supported by a US$100 million facility to boost capital inflows for financial institutions.
The government is concerned with challenges affecting the financial sector such as under-capitalisation, increasing non-performing loans, limited lending capacity, lack of confidence and high lending rates.
Bankers Association of Zimbabwe president George Guvamatanga told the ZBC News that financial institutions are committed to ensuring that the interbank system will build depositor confidence.
"It is really a critical policy and we hope it will be implemented to boost inflows of capital," he said.
The absence of an interbank trading system since 2009 has created challenges for several financial institutions as they have been exposed to capital challenges.
However, with the government assuring stakeholders that it will be recapitalising the Reserve Bank of Zimbabwe to resume its role as lender of last resort, it is being anticipated that the move will promote stability in the financial industry.
Of late, a number of people have expressed disappointment with the banking sector after they failed to access cash at their banks, although it is not confirmed how many institutions are unable to service their clients.
Source - zbc
