28 July 2016
   
NGOs say Mugabe is fanning terror
War vets secretary general arrested
EU court upholds Tomana sanctions
People's take as Mawarire opts for exile
Mandaza, Todd, Kagoro et al for caretaker govt
Mnangagwa leading new coup bid, Minister
I’ll rule for a long time, vows Mugabe
War vets leader held, home ransacked
MORE NEWS
Essar got fed up with govt and left, Min
Mimosa output seen at record levels
MORE BUSINESS
Zhakata takes new album to Mash central
Koffi Olomide jailed over assault incident
MORE SHOWBIZ
Highlanders fluff ascent to the top
Ntini: Zim waited too long for Tests
MORE SPORTS
War veterans must apologise for their sins
Britain must stop shoring up Mugabe
MORE OPINION
 
MDC-T VPs: Tsvangirai violated party rules
Wafawarova: Lets defend the revolution
MORE COLUMNISTS
 
 
Biti accuses banks of 'stealing'
24/05/2011 00:00:00
by Paul Nyakazeya I NewsDay
 
Attack ... Finance Minister Tendai Biti
 
RELATED STORIES
RBZ, banks reach rates, charges deal
RBZ closes two troubled banks
Bank deposits up 21 percent
Indigenous banks: patriotism versus safety
Trust Bank must pay Shah US$1.5mln
Gono warns banks over indigenisation
Trust Bank to re-open branches
CABS resumes mortgage lending

FINANCE Minister Tendai Biti on Monday accused bankers of “stealing depositors’ money” and subsequently blaming the government and the Reserve Bank of Zimbabwe (RBZ) for implementing policies they allege were not conducive for the banking sector to operate viably.

Officially opening the 38th African Insurance Organisation (AIO) conference Biti said he was happy to be among insurance industry players whose efficient operations stabilised countries.

“I was telling (Elisha) Mushayakarara when I just arrived that I am happy to be among insurance industry players after dealing with bankers the past two weeks,” said Biti.

“I have been playing with bankers a forth-night ago and it is good to be away from them. Bankers steal people’s money and then fail to supervise themselves and blame us (the government and Reserve bank).”

Mushayakarara is the chairman of the Insurance and Pensions Commission.

However, contacted for comment, Bankers’ Association of Zimbabwe president John Mushayavanhu said banks had so far done well in managing their own balances and supervising themselves.

“We have been keeping our lending deposit ratios low to manage liquidity pressure and to say we have been stealing depositors’ money — that is not what is happening,” said Mushayavanhu.

In his update on Zimbabwe’s economic performance for the first quarter of this year, Biti revealed that about 34% of bank loans had not been repaid. He expressed concern at the high loan-to-deposit ratio which stood at 76% and suggested that the sector faced a loan default risk.

Last week, RBZ governor Gideon Gono said he was compiling a comprehensive report on the soundness of each bank to be presented on June 1 along with measures the central bank would take on financial institutions found wanting.

In January, bank deposits stood at $2,36 billion, increased to $2,4 billion in February and ended the first quarter in March at $2,57 billion. On the other hand, loans increased from $1,81 billion in January to $1,88 billion in February and then to $1,99 billion, representing a loan-deposit ratio of 77,3%.

Despite the growth in the deposits base, interest on savings of 1% has remained largely low, but interest on savings of up to three months has improved to between 9% and 12%.

However, lending rates have remained unsustainably high, ranging between 15% and 30% with over 90% in short-term loans.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark
 
 
 
comments powered by Disqus
 
Car shipping to Namibia, Zimbabwe, Botswana, Mozambique, South Africa and Zambia from UK
RSS NewsTicker