The Reserve Bank of Zimbabwe (RBZ) on Wednesday revealed that the banking sector deposits, including inter-bank increased by 26.47%, from $6.99 billion as at 30 June 2017 to $8.48 billion as at 31 December 2017.
According to the monetary policy issued on Wednesday by the Reserve Bank of Zimbabwe Governor John Mangudya, the increase in deposits was partly attributable to increased export receipts among other factors.
“The notable increase in deposits was partly attributable to increased export receipts, the expansionary impact of government expenditure and the multiplier effect of new deposits.
“Banking sector loans and advances increased from $3.69 billion as at 30 June 2017 to $3.80 billion as at 31 December 2017.
“Banking institutions have continued to support the productive sectors of the economy. Lending to the productive sectors constituted 73.64% of total sector loans as at 31 December 2017,” said Mangudya.
He added that the aggregate core capital increased by 10.48%.
“The aggregate core capital increased by 10.48%, from $1.24 billion as at 30 June 2017 to $1.37 billion as at 31 December 2017, on the back of improved earnings performance.
“All banking institutions were adequately capitalized as at 31 December 2017.
“The average capital adequacy and tier 1 ratios were 27.63% and 23.97%, against the required minimum of 12% and 8%, respectively,” he said.
He added that as at 31 December 2017, a total of 11,744 out of 54,909 depositors by number had been compensated out of the Deposit Protection Fund in respect of the failed contributory institutions under liquidation. In monetary terms, $3.2 million was paid, which represents 50% of the total exposure of $6.4 million.
