Business

Customer deposits increase – BAZ

ESTHER MSETEKA, Lusaka
BANKERS Association of Zambia (BAZ) says customer deposits have grown to about K47 million from over K25 million due to stability in the economy in the past four years.
BAZ chairperson Clergy Simatyaba said significant growth has been witnessed in all deposits, with current account registering the largest deposits of over K30.8 million, representing an increase of 33 percent as at end of last month, from about K21 million as at December 2012.
Mr Simatyaba said time deposits increased by 50 percent to K11.5 million as at August 2015 from K5.8 million as at December 2012, while savings deposits grew to about K4.6 million, recording an increase of 25 percent from K3.4 million, as at December 2012.
“Since 2000, bank deposits have averaged around 15.7 percent of the gross domestic product in Zambia. Analysis of the overall growth in deposits over the past four years reveals that the total customer deposits have been on an upward trajectory growing from K25,162 million in 2012 to K47, 013 million as at end of September 2015, representing a growth rate of 46 percent,” he said during a media breakfast on Friday.
Mr Simatyaba said the savings growth rate has been lower than that of other deposits despite the fact that most accounts in banks are savings accounts.
He said there is need to grow the deposits from the current K47 million by 25 percent to create liquidity in the economy.
Mr Simatyaba said having a strong deposit base will enable banks to lend out to investors in the various economic sectors.
“The economy has been growing steadily. If the economy is growing it means people are able to set aside a bit of wealth for investment,” he said.

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