Monday, 30 April 2012 17:33
Zimbabwe’s banking sector deposits have increased to US$3.7 billion in the first quarter from US$3.1 billion in January this year amid calls for the financial industry to reduce bank charges.
In a move that is reflecting a restored confidence within the financial sector, officials from the Bankers Association of Zimbabwe have confirmed that total deposits increased to US$3.7 billion in the first quarter.
However, analysts have called on banks to ensure that the move translates into increased lending at reduced interest rates.
A business analyst, Mr. Simon Chaita says the rise in deposits should enable banks to reduce charges on savings and focus on workable policies to tap more than US$3 billion which is reportedly circulating outside the formal banking channels.
“We hope they can do something to increase deposits and work on policies to reduce the bank charges,” said Mr Chaita.
The increase in total banking sector deposits is also expected to result in banks providing loans to productive sectors as opposed to consumption purposes.
Zimbabwe’s banking sector which has been described by monetary authorities as safe and sound is however experiencing challenges of balancing the act between deposits and interest rate charges, amid revelations that 70% of the deposits are of short term nature.