adminBankers Association of Zimbabwe president Mr John Mushayavanhu said the public had lost confidence in banking.
“People now prefer to keep their money at home or invest in other sectors,” he said.
Mr Mushayavanhu said huge sums of money were circulating in the informal sector as people cannot be drawn to keep their money in banks.
“Small to medium enterprises (SMEs) constitute a large proportion of money holders hence their failure to deposit affects efforts to deal with the liquidity crunch,” he said.
He also urged the Government to avail funds to the central bank to resume its role of being the lender of last resort.
Treasury availed $100 million to banks in the 2012 National Budget to enable the Reserve Bank of Zimbabwe to resume its lender-of-last-resort function and kick-start inter-bank lending.
“However up to today the money has not been availed to the RBZ,” said Mr Mushayavanhu.
Meanwhile, some economic analysts have attributed the weak depositor confidence to low incomes.
“When most people settle bills and pay rent little is left for banking,” said analyst Mr Michel Chidemo.
Mr Chidemo urged the government to devise a policy that would ensure every business deposits a certain percentage in relation to their income.
“The Nigerians, Indians, among other foreigners who own businesses in this country prefer to keep large sums of money at home hence there is need to make it a prerequisite to deposit,” he said.
Mr Chidemo said the move would enable banks to find capital to offer credit lines and loans. — New Ziana.
Online Reporter