Zimbabwean businesses and residents are showing more confidence in the nation’s banking sector. Latest figures show there was an increase in banking deposits from January to September this year.
There seems to be some light at the end of the tunnel for the Zimbabwean banking sector. As the year comes to an end there is increased confidence in the banking sector from traders despite some economic instability. The banking sector’s deposits increased by 7.5% to 4.3 billion in the nine months to September from $4 billion in January this year.. due to a rising confidence in the sector. Despite the increase in deposits banks are being urged to come up with strategies that will enhance effectiveness in the sector…as well reduce the costs of banking.
However bulk of the money is being held by the informal sector.There are frustrations about the interest rates currently being charged by the banking sector as well as the service fees. Despite the existing tide of challenges confronting the banking sector… some of the informal traders still see the banking system as the only positive way to safeguard their money.
An increased faith in the nation’s banking sector comes in as a much anticipated step towards economic progress. Previous reports that came out earlier this year stated that 70 percent of the nation’s population were not depositing their money into banks.preferring more informal ways of keeping their money. That’s likely to change along with more reasonable interests rates and better loan facilities for customers.