'Zimbabwe banking sector stable,' claims Chinamasa

Finance and Economic Development Minister Patrick Chinamasa says the banking sector continues to stabilise following the freeing of bank's balance sheet by the Zimbabwe Asset Management Company (Zamco).

Zamco is a special purpose vehicle created by the Reserve Bank of Zimbabwe in 2014 as part of all-inclusive measures to deal with the scourge of rising non-performing loans in the banking sector.

As at November 30, 2016, Zamco had acquired NPLs totalling US$543 million, which has given breathing space to banks and other companies, especially those that are courting investors.

Presenting the 2017 National Budget last week, Minister Chinamasa said: "The banking sector continues to show signs of recovery and stability following the hiving off of non-performing loans to Zamco, and remains adequately capitalised with average capital adequacy and tier 1 ratios of 23,7 percent and 20,6 percent as at end of September 2016, respectively".

The banking sector's aggregate core capital increased from US$0,9 billion as at end of September last year to US$1,1 billion in September 2016, a move that restores confidence in the banking sector.