Zimbabwean banks meet NPL deadline
The sector's NPL ratio is now at 10.05 per cent.Most financial institutions met the June, 30 deadline for reducing their Non-Performing Loans (NPLs) ratio to below 10 per cent of total loans, the Reserve Bank of Zimbabwe (RBZ) has said.
The RBZ, which set this target last year, said the average banking sector's NPL ratio was now 10.05 per cent.
It added that the few banks that have not met the deadline are instituting credible measures to improve the quality of their credit portfolio, The Herald reports.
The announcement comes after the RBZ decided to set up new special asset management companies (SAMCs) to acquire and manage NPLs in the banking sector.
They will complement the Zimbabwe Asset Management Corporation (ZAMCO), which has already largely contributed to the drop in NPLs, which represented about 20 per cent of all loans in 2014.
The SAMCs will undertake specific assignments on behalf of the central bank, such as acquiring and managing non-performing loans.
They will also acquire and manage failed banking institutions, and will have powers to investigate and act as curators.