The Zimbabwean banking sector part 2

A couple of months ago I posted about the state of our banking sector. At that time it was simply speculations and forecasts that a number of banks would not survive till the end of the year. Today the iceberg has started to surface, although I think that we are yet its entire size as water levels in the banking sea continue to drop its full size will be revealed. To date two banks have closed shops and one is under curatorship. At that time we had rumours of 6 undercapitalised banks, we are yet to see the remaining three. (although I do have some little birds whispering names in my ears).

Back when I posted my main concern was the depositors and their hard earned money which they may have to wait a while to recover. What I didn’t take into consideration was that with each closed door, hundreds of people find themselves unemployed. The bigger picture goes beyond the banks and their depositors. It extends into the lives of employees and their families. The bigger picture includes individuals whose livelihoods depended on the paychecks that these banks were providing. The bigger picture includes young ambitious professionals who were hoping to rise through the ranks in their respective banks. The picture transcends the banks themselves and sits in living rooms with families.

While I am sadly gazing at this big picture “one suit”looking at the same picture  is on recording uttering “its (one of the closed banks) deposit of US$5.8 million is a fraction of US3.5 billion total deposits in the banking sector and its market share was at 0.00% something  so it will have no effect in terms of the stability of the banking sector. It is akin to having a toothache that bothers you. The moment it is removed you fell better and you can sleep”.

What can I say I guess this business and it aint nothing personal?

Well Mr Suit, while you get to sleep after removing your bad tooth, some individual out there will not be so fortunate. You have gotten rid of your toothache but they have developed a headache.

Foreign owned banks remain healthy well at least until Indigenisation and Economic Empowerment catches up with them. Banks with the Government paws all over them remain cushioned for as long as the powers that be remain in power. This other bank the one with some Telecommunications links, this one I am still trying to size up, I will have to get back to you on that one.

Lets sit BANK, relax and watch.

p.s as always I will remind you that I am no banker just an ordinary Zimbabwean observing the things around her…