HARARE – The Reserve Bank of Zimbabwe (RBZ) has claimed that Zimbabwean banks have the capacity to bankroll the economy, ENN reports.
“As at March 31 ,2021, Zimbabwe’s banking sector was characterized by well-capitalised banking institutions, with an average capital adequacy ratio of 30,04 percent above the regulatory limit of 12 percent, and sound asset quality, with non -performing loans ratio of 0,36 percent, well below the international benchmark of less than 5 percent “, said Nedson Mupunga, who is the RBZ principal economist.
Mupunga also mentioned that Zimbabwe’s banking sector was resilient as attested by limited vulnerability to extreme shocks which were indicated by the latest RBZ stress test results. These optimistic claims have come at a time Zimbabwe has failed to attract cheap and significant foreign capital to rejig its fragile economy, which is yet to fully recover from decades of mismanagement, and from the economic impact of the Covid-19 pandemic on its citizens.
