Reserve Bank of Zimbabwe Governor criticises multinational lenders

Feb 07, 2011

Multinational financial organisations operating in Zimbabwe have been criticised by the country's reserve bank.

Dr Gideon Gono, Governor of the Reserve Bank of Zimbabwe, has expressed concerns that firms such as Standard Chartered and Barclays Bank Zimbabwe have not been helping to introduce capital to the country's economy.

"The low levels of overall loans to deposit ratios at these banks are a development which is constraining the economy's recovery," he remarked, adding the Reserve Bank will be taking action against multinationals that do not boost the country's financial situation by lending.

Central Bank statistics show the lowest loans to deposit ratio - 25.23 per cent - was held by Barclays Bank Zimbabwe in 2010, followed by Stanbic and Standard Chartered, which had ratios of 33.9 per cent and 50.72 per cent respectively.

Standard Chartered operates 24 branches and offices across the country, while Barclays Bank Zimbabwe has around 30 outlets nationwide.