Offshore credit lines lift FCB

FIRST Capital Bank (FCB) says it will continue to prioritise the creation of offshore lines of credit in the short-term to give impetus to the balance sheet growth and mitigate downside risks associated with the tight liquidity regime.

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This comes as the regulatory authorities have been implementing measures for liquidity sterilisation to contain money supply growth.
The measures include a hike in statutory reserve ratios for both the US dollar and local currency, an aggressive mopping up of excess Zim dollar liquidity into non-negotiable certificates of deposit and a high interest rate regime, which was maintained for Zim dollar borrowings.
“The tightening of liquidity directly resulted in a slowdown in asset creation activities with credit risk becoming more prominent across the banking sector,” FCB company secretary, Sarudzai Binha said in a trading

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