An Assessment on the Causes of Bank Failures in Zimbabwe. A Case Study of ZB Bank (Period 2006-2014).
- Author
- Ottilia Tariro Masunga
- Title
- An Assessment on the Causes of Bank Failures in Zimbabwe. A Case Study of ZB Bank (Period 2006-2014).
- Abstract
-
The main aim of this study was to assess on the causes of bank failures in Zimbabwe from the period between 2006 and 2014. The study was guided by four objectives: (1) to identify the causes that lead to banks failures in Zimbabwe during the referred period, (2) to examine the effects of financial institution failures, (3) to identify measures that have been put in place to prevent bank failures in Zimbabwe and, (4) to suggest any other practical or possible ways to deal with bank failures in Zimbabwe. During the said period, the sector faced some challenges as most of the indigenous financial institutions went through a series of unprecedented closures. These range from insider lending issues, poor corporate governance, and inadequate capital reserves. This study adopted the case study of ZB bank by employing questionnaires and interviews to collect data. The study carried out using a sample size of 30 employees. To successfully accomplish the objectives, the study’s analysis used Microsoft Excel and Word data analysis. The analysed data was presented using graphs, charts and tables. Findings of the research showed that poor corporate governance, non-performing loans, weak supervisory and regulatory framework and poor credit risk were the major causes of bank failures in Zimbabwe. Due to these causes, the research recommended that there is need for securitization of non-performing loans, good corporate governance needs to be ensured, and creation of specialized commercial courts, proper credit risk management as well as strengthen the supervisory and regulatory frameworks.
- Date
- 2021
- Publisher
- BUSE
- Keywords
- Banks
- Financial Institution
- Supervisor
- N/A
