Banks scramble for TBs

Banks scramble for TBs
Finance Minister Patrick Chinamasa and RBZ Governor John Mangudya

Finance Minister Patrick Chinamasa and RBZ Governor John Mangudya

ZIMBABWE’S banks are scrambling for Treasury Bills (TBs), whose uptake rose sharply last year despite an International Monetary Fund (IMF) warning that the money market instruments increased financial sector fragility.
Banks’ TB stocks increased by a combined 253 percent during the year to December 31, 2017 to $5,2 billion, from $2 billion in 2016.
The IMF said last year that there were “risks associated with the discounting of Treasury bills” on the domestic market, but pointed out that banks were strategically investing in these short-term instruments to convert non-performing loans into assets that generate returns.

Read full story in The Financial Gazette paper

Connect With Us

Fingaz Polls

CEO term limits...good or bad idea?