rbz samora machel avenue.jpgThe Confederation of Zimbabwe Industries (CZI) says government should inject US$100 million into the Reserve Bank of Zimbabwe to ensure that it starts performing its duties that is being the lender of last resort.

The placement of Renaissance Merchant Bank under curatorship has raised concern over the Central Bank’s oversight role over financial institutions.

As a result, CZI President, Mr Joseph Kanyekanye said there is need to recapitalise the central bank to the tune of US$100 million in the 2nd half of the year to ensure that it is able to undertake its role of lender of last resort.

RBZ is currently disposing its non-core assets and shareholding in some firms, which is anticipated to raise funds for the central bank, which is constrained in terms of capital to boost its operations.

The central bank is mandated to overlook that the financial services sector is sound and stable through supervision to ensure that banks meet the stipulated minimum capital requirements.

The financial services sector has been heavily criticised for failure to offer long term finance and high interests rates of between 15% and 25%.