Banks register stagnant growth in loans

Zanaco Chief Executive officer Henk Mulder with his Head of Corporate Affairs, Maria Karima after the company's General Meeting held in Lusaka on Thursday. PICTURE:COLLINS PHIRI

ZAMBIA’S banking industry last year registered stagnant growth in loans mainly due to the high interest rates on the market.
According to the Bank of Zambia (BoZ), average nominal lending rates for banks declined to 24.6 percent in December 2017 from 29.2 percent in December the previous year, which was too high to support productive sectors of the economy, constraining credit growth and contributing to the current high non-performing loans.
Zanaco Bank Plc managing director Henk Mulder said interest rates are still high despite reduction in the monetary policy.
“Inflation rate has tremendously gone down from as high as 21 percent in 2015 to 6.1 as at end of …

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