Zim banks’ lending appetite weakens

Banks in Zimbabwe will continue to rely on non-funded income as they tighten lending during the second half of the year due to the heightened risk posed by the current inflationary economy, a new report has shown.

In a review of the country’s banking sector, Akribos Research Service said bank’s lending appetite was weakening.

“Looking at data from the Reserve Bank of Zimbabwe, bank loan to deposit ratios have gone down from an average of 86,07 in 2015 to 56,64 in 2016.

This trend has continued with the ratio dropping to 44.81 per cent in 2017, 40.71 per cent in 2018 and 33.6 per cent in 2019,” Akribos said.

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