The Sunday News
Uzile Mkwanazi, Sunday News Reporter
THE banking sector has urged members of the public to stop hoarding money at home and instead bank it so that it circulates and contributes to the boosting of the country’s economy.
Speaking during the second edition of the Bulawayo Business Expo, ZB Financial Holdings Limited (ZBFHL) board chairperson, Mr Luckson Zembe said there will be no banks and money for people to borrow if members do not desist from the habit of hoarding money at their homes.
“There is no relevance for banks without the people and without us lending them money to fund their businesses. That’s why we are there as intermediaries, and what is important for money in any given economy is its circulation. I know I am talking to Zimbabweans who have lots and lots of money right now buried in their pillows and mattresses.
“When you come to the bank and say you want money, to support your business and there is no money circulating, then there will be no money in the banks to give you. That money you have hidden needs to circulate, that’s what drives the economy. Let whatever money we have circulate through economic activities and one of those channels which is very important is the banking industry,” said Mr Zembe.
He said they were aware of the challenges that they are having as the banking sector which he said they were collectively working on solving.
He said the Reserve Bank of Zimbabwe was operating under a tight monetary policy which re-oriented the country onto the right track to macro-economic stability.
“The Reserve Bank of Zimbabwe is operating on a tight monetary policy which then reduces the amount of circulation that may be there on the local scene and it has to be that way if we are to manage inflation, the availability of money and resources in the banking sector is therefore constraint by the tight monetary policy and also by us who are not banking money. We are therefore breaking the cycle that should be happening in the economy meaning that one is either part of the solution or the problem.
“Yes, as an economy we are going through a tough time, but it is said that when the going gets tough it is the tough who get going, and if you want to see how good any tea is, they say put it in hot water and it will show you whether or not that is good tea. It is in these hard times that bring the best out of us, so these challenges should not frighten us as this is not the first time and we rose to previous difficulties and I have no doubt we will again do so,” said Mr Zembe.
