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The Banking Sector in Zimbabwe
BY Louise Mitchelle
Zimbabwe
23 March 2018
R 14 400.00 (ZAR)  
estimated $ 1 100.18 (USD) *
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The Banking Sector in Zimbabwe


The report on the Zimbabwean banking industry covers the Reserve Bank of Zimbabwe and deposit-taking institutions such as commercial banks, co-operatives, microfinance institutions (MFIs) and building societies. In 2016 the financial services sector contributed about 7% to GDP and total banking sector assets grew by 9.6% from US$10.26bn in September 2017 to US$11.25bn at the end of 2017. Of the current 19 licensed banks, 14 are commercial banks, four are building societies and there is one merchant bank that has been in provisional judicial management since 2015. In the sector 189 licensed MFIs are active; 184 are credit-only and money-lending MFIs while five are deposit-taking MFIs.


Difficult Conditions


The current distress in the Zimbabwean banking sector is caused by an operating environment characterised by weak economic activity and cash and foreign currency shortages. Fiscal imbalances combined with the large volume of domestic borrowing in 2015/16 weakened the financial sector. The fiscal cash deficit was largely financed from domestic financial markets as external arrears prevented Zimbabwe from gaining access to international capital markets. Cash shortages followed, financing for imports dried up, and the current account deficit narrowed dramatically. The liquidity of banks is still under threat from the large fiscal deficit and government’s efforts to settle lending from banks by Treasury Bills that are being traded at discounts of around 40%.


Report Coverage


The detailed report on the Zimbabwean banking sector describes current conditions, the latest events and regulatory developments and factors influencing the success of the sector. The report profiles 23 companies involved in the sector including the People’s Own Savings Bank, which has 34 branches countrywide. It also has 296 third-party retail networks contracted as agents, who are authorised to offer selected products and services such as bill payments, cash deposits, internal transfers and balance enquiries on behalf of the bank. Also profiled is Barclays Bank of Zimbabwe which used to be part of Barclays Bank Plc until it was sold to Malawi’s FMB Capital Holding in 2017.


Page
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 3
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 9
4. SIZE OF THE INDUSTRY 10
5. STATE OF THE INDUSTRY 17
5.1. Local 17
5.1.1. Corporate Actions 25
5.1.2. Regulations 26
5.1.3. Enterprise Development and Social Economic Development 30
5.2. Continental 32
5.3. International 35
6. INFLUENCING FACTORS 36
6.1. Economic Environment 36
6.2. Treasury Bills 37
6.3. Digital Banking 38
6.4. Financial Inclusion 38
6.5. Rising Operating Costs 39
6.6. Information Technology and Innovation 40
6.7. Cryptocurrencies 40
6.8. Labour 41
6.9. Cybercrime 42
6.10. Environmental Concerns 42
7. COMPETITION 43
7.1. Barriers to Entry 43
8. SWOT ANALYSIS 44
9. OUTLOOK 45
10. INDUSTRY ASSOCIATIONS 46
11. REFERENCES 46
11.1. Publications 46
11.2. Websites 48
COMPANY PROFILES 49
AFRICAN CENTURY LTD 49
AGRICULTURAL BANK OF ZIMBABWE LTD (THE) 51
BANCABC ZIMBABWE LTD 54
BARCLAYS BANK OF ZIMBABWE LTD 57
CBZ HOLDINGS LTD 61
CENTRAL AFRICA BUILDING SOCIETY 65
ECOBANK ZIMBABWE LTD 68
FBC HOLDINGS LTD 70
INFRASTRUCTURE DEVELOPMENT BANK OF ZIMBABWE 74
LION MICROFINANCE LTD 77
METBANK LTD 79
MICROPLAN FINANCIAL SERVICES (PVT) LTD 82
NATIONAL BUILDING SOCIETY 85
NEDBANK ZIMBABWE LTD 88
NMBZ HOLDINGS LTD 92
PEOPLE'S OWN SAVINGS BANK (THE) 96
RESERVE BANK OF ZIMBABWE 100
SMALL AND MEDIUM ENTERPRISES DEVELOPMENT CORPORATION (THE) 103
STANBIC BANK ZIMBABWE LTD 105
STANDARD CHARTERED BANK ZIMBABWE LTD 109
STEWARD BANK LTD 113
SUCCESS MICROFINANCE BANK LTD 115
ZB FINANCIAL HOLDINGS LTD 117