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MONETARY POLICY STATEMENT

MONETARY POLICY STATEMENT ISSUED IN TERMS OF THE RESERVE BANK OF ZIMBABWE ACT CHAPTER 22:15, SECTION 46 BY DR. DHLIWAYO ACTING GOVERNOR RESERVE BANK OF ZIMBABWE JANUARY 2014 2 TABLE OF CONTENTS TABLE OF CONTENTS .. 2 Tables .. 4 Figures .. 4 INTRODUCTION .. 5 Current Challenges .. 5 ROLE OF THE RESERVE BANK OF ZIMBABWE .. 9 Banker to Government .. 10 Lender of Last Resort (LOLR) .. 10 Interbank Market .. 11 EXTERNAL SECTOR DEVELOPMENTS .. 13 International Remittances .. 14 OVERVIEW OF THE BANKING SECTOR .. 15 Architecture of the Banking Sector .. 15 Financial Intermediation .. 16 Deposits, Loans and Advances .. 16 Sectoral Distribution of Credit .. 18 Non-Performing Loans (NPLs) .. 19 Current Developments in Banking Sector Capitalisation .. 21 Risk Management and Establishment of Mortgage Financing.

6 i. A severe and persistent liquidity crunch which has made it very difficult for local productive sectors to access sufficient credit to oil the wheels of our economy;

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  Policy, Direct, Testament, Monetary, Monetary policy statement, Crunch

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