HARARE – Banking sector capitalisation increased to $1,24 billion by end of June 2017 from $1,22 billion recorded in the first quarter.
Parliament’s Budget Office (PBO) said all the banking institutions were adequately capitalised and complied with minimum capital requirements.
CBZ managed to hit $238,90 million core capital by June 30, 2017 from $237,58 million recorded in the first quarter. Stanbic Bank increased core capital by $6,7 million in the second quarter while BancABC and CABS showed a decline in capitalisation levels.
Although the liquidity ratios showed an improvement, the banking industry continued to experience underlying shortages of physical cash.
The PBO said cash shortages are a result of structural challenges facing the economy which include a high fiscal recurrent expenditure mostly employment related costs which generally increases the demand for cash.
In the second quarter, total deposits were $6,99 billion which is 6,7 percent higher than $6,55 realised in the first quarter. The maximum effective lending rate as at June 30, 2017 averaged at 11,94 percent from the 15,7 percent recorded by the end of December 2016.