The rate of non-performing loans (NPLs) had dropped to 7,08 percent by end of last year from 20,5 percent in 2015, raising great expectations that the financial services sector is becoming more stable.
Although the NPLs have declined to single-digit figures, they remain above the 2016 year-end target of 5 percent set by the Reserve Bank of Zimbabwe (RBZ). Fears abound that while cutting back on lending might help maintain stability in the financial services sector, it could negatively impact on economic activities as this affect loans uptake due to as banks become risk averse.
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