bank 27.10.10.jpgThe total credit provision into the economy by banks has significantly increased from US$645 million in 2009 to US$1,4 billion in 2010 on the back of improved performance by the banking sector.

This positive growth in credit provision saw the loan deposit ratio rising to 70% in 2010 up from 50% in 2009, statistics from the Bankers Association of Zimbabwe (BAZ) have shown.

All 15 banks operating in the country recorded deposit growth, with short term deposits, which were pegged at 97,5% of total deposits, dominating total bank deposits.

BAZ noted that the agriculture sector accounts for the single largest share of credit at 22%, while distribution and manufacturing sectors accounted for 20% credit each.

Households received 8% credit, while the mining sector received 7%.

With most banks returning to profit as indicated by the financial results recently released for the year ended December 31 2010, banking institutions are expected to play an even greater role in financial intermediation, which is critical for sustaining economic recovery and growth.