Banks’ intermediation improves

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THE country’s total banking sector loans and advances increased by 61 percent from $142,79 billion in June 2021 to $229,94 billion in December, largely due to an increase in foreign currency denominated loans, the Reserve Bank of Zimbabwe (RBZ) has said.
In his monetary policy statement published on Monday, RBZ governor John Mangudya said foreign currency denominated loans constituted 36,87 percent of total banking sector loans in December, an increase from 30,16 percent reported in June last year.

“During the period under review, financial intermediation improved from 45,84 percent recorded in June 2021 to 48,27 percent as at 31 December 2021.
“The banking sector continued to support the economy as evidenced by loans to the productive sector constituting 76,29 percent of total loans as at December 31, 2021,” Mangudya said.