Categories: Zim Latest

You have scored an own goal, BancABC warns Mnangagwa

President Emmerson Dambudzo Mnangagwa could have scored an own goal by suspending banks’ lending role one of the country’s leading Banks has warned.

President Mnangagwa recently banned the bank’s lending role which is the core business, but analysts say the move could backfire.

BancABC says Mnangagwa’s move could cut financial sector’s income by half, leading to the collapse of banks, with devastating effect for the whole economy.

In an analysis of the measure, BancABC maintains that lending is the core function of all banks that many of them cannot do without.

“”Banning lending activities will threaten survival of banks as this will wipe out 20-50% of their incomes,” says BancABC.

The bank added that President Mnangagwa’s decree will deprive companies of capital, and could force banks to survive through unofficial means.

Apparently, President Mnangagwa’s move was supposedly aimed at arrest the Zimdollar’s continued free-fall.

However, renowned economist Steve Hanke is on record saying Zimbabwe should abandon the local currency and dollarise.

In his recent update, Hanke said:

“In this week’s inflation table, Zimbabwe takes the 1st prize. On April 28, I measured Zimbabwe’s inflation at 207%/yr.

“More than 3x the official inflation rate of 61%/yr. It’s time for Zimbabwe to dump the Zimbabwean Dollar & officially adopt the USD.”



Recent Posts

Mliswa’s daughter arrested over drugs

Former Norton Independent Member of Parliament Temba Mliswa's daughter has been arrested for drugs. Confirming… Read More

27th February 2024

Lorraine Guyo’s Birthday: Mystery Boyfriend Steals Spotlight Amidst Speculation…PICTURES

During Lorraine Guyo's recent birthday celebrations, attention was drawn not only to the delicious treats… Read More

27th February 2024

Zimbabwean Musician BaTroy Crashes Gifted Car from Controversial Businessman Wicknell Chivhayo

BaTroy, renowned for his hit song ‘Shungu Dzemoyo Wangu,’ has been involved in an accident… Read More

27th February 2024

Tshabangu Denies Purported Recall, Says He Owns Chamisa Face

CCC's controversial interim secretary-general, Sengezo Tshabangu, has rebuffed claims of his recall from the party,… Read More

27th February 2024

Police launch man-hunt after man with 2 pistols threatening to kill Mnangagwa goes viral

The Zimbabwe Republic Police (ZRP) is appealing for information which may assist to identify and… Read More

26th February 2024

5 arrested after Zimbabwean man (26) is murdered in the UK

...slain Zimbabwean Lazarus Makono died from a stabbing in Barnsley on February 21, 2024... LONDON,… Read More

26th February 2024