Bank loans uptake slows

HARARE - The banking sector recorded a low loans uptake as a result of high lending rates as corporate clients in the sector slumped, figures from the Reserve Bank of Zimbabwe show.

In its weekly economic report, the central bank said loans have declined to $3,4 million from $3,6 million in January this year. Lending rates for corporate clients went down to 8,85 percent during the week ending April 24 from 8,90 percent in the previous week.

During the period under review, loans and advances constituted 81,44 percent of the total credit to the private sector, followed by mortgage advanced by building societies at 14,40 percent.

Other investments accounted for 1,75 percent while bankers’ acceptances contributed 0,92 percent. Weighted lending rates for individuals however, firmed to 12,69 percent from 12,59 percent recorded in the prior period.

During the week, average savings deposit rates remained unchanged at 3,54 percent, while deposits with one month and three month tenors fell to 9,21 percent and 10,81 percent respectively.

However, mobile-based transactions slumped three percent to $67,04 million from $69 million in the previous period.

The RBZ said the total value of transactions processed through the National Payment System during the week under review rose to $1, 11 billion, up from $1, 04 billion recorded in the previous week, attributed to a general increase in transactions processed through the system. Real Time Gross Settlement (RTGS) transactions went up seven percent to $962,98 million in the review period from $900,06 million recorded in the prior week.

Transactions made through the Automated Teller Machines (ATMs) were also up 10 percent at $53,9 million from $49 million while Point of Sale transactions went up 41 percent to $27,8 million from $19,7 million. Cheques transactions increased by 19 percent at $3,17 million from $2,67 million in the prior period.

RTGS payments continued to dominate the NPS, accounting for 86,37 percent of the total value of transactions, followed by mobile-based transactions at 6,01 percent and ATMs at 4,84 percent. The gap between lending and deposit rates has remained wide with the majority of bank deposits being short-term leading to higher  rates for fixed deposits.

Comments (1)

May the government assist us on bank loans as it used to be during colonial era.

Dadirai Tonderai - 10 May 2015

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