HARARE – Two more indigenous Zimbabwe banks face collapse due to the persisting liquidity crisis’ systemic risk inherent in the financial sector, a report released this week indicated.
In a 2014 first half analysis of Zimbabwe’s economy, Econometer Global Capital (Econometer) warned that the country’s financial sector was far from being solid.
“Contrary to the official position of Zimbabwean government, the banking sector is indeed safe but not sound with signs of widening cracks in the quality of assets, which calls for urgent attention,” said Econometer in the report.
“By year end, we expect at most two indigenous banks either to falter or request for curatorship as their liquidity positions worsen while attracting deposits is becoming almost impossible,” the research firm said.
It noted that in banking, the level of information asymmetry was very low to the extent that an average potential customer is aware of the risks to do with such banks.
“RTGS processing is a nightmare. Going forward, we do not anticipate any significant recovery…in the next 36 months,” said Econometer…
South Africa Today Africa – Southern Africa Zimbabwe News
