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New bank capital requirements: a red herring

By Lance MambondianiBanking, Companies, Money
gideon-gono-01082012-ss

IN THE recent Mid-Term Monetary policy statement, the central bank has proposed a 10-fold increase in bank capital adequacy requirements (CAR) to US$100 billion. Whilst the chronic fragility within the Zimbabwean banking sector requires urgent redress, the proposed adjustments are … Read more

1,790 Comments

Economy operating below capacity

By Lance MambondianiBudget, Economics, Money, Politics
biti-26072011-3

IN FEBRUARY 2009, Zimbabwe’s bickering political parties formed a three-party coalition government underwritten by the African Union, a marriage of convenience following a disputed election. The economy, described then by Economist’s Economic Intelligence Unit as ‘the worst in the world’ … Read more

1,903 Comments

The risk of indigenising banks

By Lance MambondianiBanking, Companies, Money, Stock Market
barclays

A YEAR ago, David Brown – the head of Impala Platinum – believed Zimbabwe’s indigenisation plans for foreign-owned mines “would not happen”. The policy, which required all companies with a share capital above US$500,000 to arrange for 51 percent of … Read more

2,425 Comments

National Budget: nation watches, uncomprehending

By Lenox MhlangaBudget, Money
biti-26072011-3

WHY do we dread budget time? Is it because there is little good news, if any, that comes out of such an exercise, particularly when it comes to helping the poor in times of economic hardship? The national budget will … Read more

906 Comments

Zimbabwe: expectations, anticipation and reality

By Gilbert MupondaBusiness, Economics, Money, Retail and Customer

AFTER being in the diaspora for seven years and following Zimbabwe’s progress, or lack of, through media reports, it has been a great challenge to reconcile my expectations with reality. Being away for so long results in a natural loss … Read more

4,577 Comments

RBM collapse: a failure of regulation

By Lance MambondianiMoney, Personal Finance

THE recent problems at ReNaissance have no doubt reignited sad memories of the 2003 financial sector crisis in which 13 indigenous banks collapsed. Between December 2003 and June 2004, five banks were placed under curatorship, two were liquidated and four … Read more

1,085 Comments

‘Loan sharks’ feast on culture of profligacy

By Alex MagaisaBusiness, Companies, Money, Personal Finance

I HAVE followed with some interest recent developments in Zimbabwe’s financial sector, in particular the severe challenges faced by Renaissance Bank. There are two observations to be made. First, the collapse of Renaissance has been presented as a failure of … Read more

768 Comments

Zim dollar cannot wait for elections

By Gilbert MupondaEconomics, Money, Politics
biti-gono

THE debate about the proposed gold-backed Zimbabwe dollar has turned out to be a very interesting battle of ideas. My old university motto taught us its always wise to “think in other terms”. After a decade of economic decline, Zimbabwe … Read more

1,013 Comments

Time to break Europe’s strangehold on IMF top job

By Alex MagaisaEconomics, Money, Politics
dominique-strauss-kahn

IT WAS not even possible to imagine, at the start of last week, that events in a luxury suite in a New York hotel would have profound ramifications on the politics of global finance and regulation. Yet the arrest of … Read more

1,272 Comments

Thumbs up to gold-backed Zim dollar

By Gilbert MupondaBudget, Money
gono

RESERVE Bank Governor Gideon Gono’s proposal this week for the introduction of a gold-backed Zimbabwe dollar is an idea whose time has come. If implemented properly, the gold-backed local currency will resolve the liquidity crisis currently ravaging the sanctions-hit economy. … Read more

1,094 Comments