Banks Are Sabotaging The Economy By Not Lending Money: RBZ

The Reserve Bank of Zimbabwe (RBZ) has complained that banks are happy not lending money. Instead, the banks are depositing the money with the central bank at no interest at all. Speaking at the ZimTrade-Banks breakfast seminar, RBZ principal analyst for financial markets, Tapiwa Furusa said,

We have got a challenge and this challenge I will have to say it whilst all the banks are here. We have got a challenge with our banks. Whilst the Reserve Bank is doing all these things (availing funding facilities), you know what these banks are doing? When you deposit your money into your accounts with them, they take that money, come and deposit at the central bank and at the central bank we don’t give them any interest. It’s zero interest, but they are happy to maintain it there.

…I want to say it whilst they are here and also you are here so that you know that we are against what they are doing. We want them to promote production.

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