Local banks rely on non-funded business

ZB FINANCIAL Holdings (ZBFH) says banks in Zimbabwe have had to rely more on non-funded income as a result of a tight monetary policy that has seen interest income declining with lending in the local currency.

Authorities introduced the measures in response to the Zimdollar’s dramatic fall against major currencies in the first half of 2023.
“In as much as this remains a very noble stance, its downside is the curtailing of credit creation, resultantly skewing banks’ performance towards non-funded income as interest income falls,” Luxon Zembe, ZBFH acting chairman, said in a statement accompanying the half year financial r