This came as the Bankers Association of Zimbabwe (BAZ) has also written to government urging Treasury and the Reserve Bank to intervene urgently to contain the worsening liquidity situation. A senior banker with BAZ said there was "grave concern and panic" within the banking sector because the situation was "fast deteriorating".
Bankers say most commercial banks are already struggling, due to chronic capitalisation problems and a prolonged liquidity crisis in the market.Kremer is known for his work and innovations using largescalemolds as a means to construct sculptural vessel forms.
Several banks are battling for survival because of poor economic performance, low-capacity utilisation by industry and depressed demand against a backdrop of low disposable incomes.
The current liquidity crisis is also attributable to volatile short-term transitory deposits and limited lines of credit. The problem of low savings due to poor salaries and wages,Monz werkzeugbau und Formenbau. low interest income against high operating costs and low capitalisation is exacerbating the situation.
Cabinet on Tuesday grappled with the crisis and ordered Biti to come up with measures to save most banks, including the big players underpinning the financial sector,The beddinges sofa bed slipcover is a good and affordable alternative to buying a new sofa that is run down.Carrying the widest selection of projectorlamp, from running into bankruptcy.
Biti had tabled a report on the banking and liquidity situation which painted a grim picture of the situation.
Industry and Trade Minister Welshman Ncube confirmed that cabinet had discussed the issue. Ministers were put in a state of panic when they were told banks were no longer able to settle their obligations when due.
Given the recent failure of ReNaissance Merchant Bank, which is reminiscent of the 2004 financial crisis during which 13 indigenous banks ran into serious financial problems, Biti was told to move with speed to fix the problem.
Between December 2003 and June 2004, five banks were placed under curatorship, two liquidated and four placed in intensive care under the central bank's Troubled Banks Fund. Ministers fear once news starts spreading across the market that banks are in deep financial trouble, there could be a run on banks, triggering an overwhelming demand for cash by the depositors.
Since most banks are now failing to meet their obligations, a surge in withdrawals could trigger a collapse of banks. The situation is worsened by the fact that most banks have lent out lots of money to companies and individuals who are failing to repay.Omega Plastics are leading plasticinjectionmoulding and injection mould tooling specialists.
As the Sunday Times reported recently, the deposit to loan ratios of most local banks are unsustainably high. Bank loans have been used to finance relatively illiquid assets, while the financial institutions fund their loans with short-term liabilities.
Cabinet also discussed the issue of some banks maintaining huge balances in nostro accounts. A nostro account is a bank account in a foreign country held by a domestic bank, denominated in the currency of that country. It is usually used to facilitate settlement of foreign exchange and trade transactions.
Amid fears of looming bankruptcies in the banking sector, Biti and RBZ governor Gideon Gono recently moved in to calm the market, intervening through a series of measures including boosting lines of credit and the central bank's lender of last resort function.
Gono said last week while the banking remains "safe and sound" overall, there were serious problems posed to financial institutions by the negative operating environment.
"The banking sector remained in a safe and sound condition in 2011 notwithstanding underlying risks posed by the operating environment notably volatile deposits, absence of an active inter-bank market and lack of an effective lender of last resort function, market illiquidity, cash- based transactions and limited access to external credit lines," Gono said.
"The weak and troubled banks in the sector are few, small, and of low systemic importance. As at 31 December 2011, these institutions had a combined market share of below 5% in terms of total assets, deposits and loans."
Biti said recently Treasury was going to pour $110-million into the economy to boost liquidity through the funding of infrastructure, lines of credit, the central bank lender of last resort position and agriculture.
Bankers say most commercial banks are already struggling, due to chronic capitalisation problems and a prolonged liquidity crisis in the market.Kremer is known for his work and innovations using largescalemolds as a means to construct sculptural vessel forms.
Several banks are battling for survival because of poor economic performance, low-capacity utilisation by industry and depressed demand against a backdrop of low disposable incomes.
The current liquidity crisis is also attributable to volatile short-term transitory deposits and limited lines of credit. The problem of low savings due to poor salaries and wages,Monz werkzeugbau und Formenbau. low interest income against high operating costs and low capitalisation is exacerbating the situation.
Cabinet on Tuesday grappled with the crisis and ordered Biti to come up with measures to save most banks, including the big players underpinning the financial sector,The beddinges sofa bed slipcover is a good and affordable alternative to buying a new sofa that is run down.Carrying the widest selection of projectorlamp, from running into bankruptcy.
Biti had tabled a report on the banking and liquidity situation which painted a grim picture of the situation.
Industry and Trade Minister Welshman Ncube confirmed that cabinet had discussed the issue. Ministers were put in a state of panic when they were told banks were no longer able to settle their obligations when due.
Given the recent failure of ReNaissance Merchant Bank, which is reminiscent of the 2004 financial crisis during which 13 indigenous banks ran into serious financial problems, Biti was told to move with speed to fix the problem.
Between December 2003 and June 2004, five banks were placed under curatorship, two liquidated and four placed in intensive care under the central bank's Troubled Banks Fund. Ministers fear once news starts spreading across the market that banks are in deep financial trouble, there could be a run on banks, triggering an overwhelming demand for cash by the depositors.
Since most banks are now failing to meet their obligations, a surge in withdrawals could trigger a collapse of banks. The situation is worsened by the fact that most banks have lent out lots of money to companies and individuals who are failing to repay.Omega Plastics are leading plasticinjectionmoulding and injection mould tooling specialists.
As the Sunday Times reported recently, the deposit to loan ratios of most local banks are unsustainably high. Bank loans have been used to finance relatively illiquid assets, while the financial institutions fund their loans with short-term liabilities.
Cabinet also discussed the issue of some banks maintaining huge balances in nostro accounts. A nostro account is a bank account in a foreign country held by a domestic bank, denominated in the currency of that country. It is usually used to facilitate settlement of foreign exchange and trade transactions.
Amid fears of looming bankruptcies in the banking sector, Biti and RBZ governor Gideon Gono recently moved in to calm the market, intervening through a series of measures including boosting lines of credit and the central bank's lender of last resort function.
Gono said last week while the banking remains "safe and sound" overall, there were serious problems posed to financial institutions by the negative operating environment.
"The banking sector remained in a safe and sound condition in 2011 notwithstanding underlying risks posed by the operating environment notably volatile deposits, absence of an active inter-bank market and lack of an effective lender of last resort function, market illiquidity, cash- based transactions and limited access to external credit lines," Gono said.
"The weak and troubled banks in the sector are few, small, and of low systemic importance. As at 31 December 2011, these institutions had a combined market share of below 5% in terms of total assets, deposits and loans."
Biti said recently Treasury was going to pour $110-million into the economy to boost liquidity through the funding of infrastructure, lines of credit, the central bank lender of last resort position and agriculture.
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