Thu, 22 Feb 2018 09:49:47 +0000
By BUUMBA CHIMBULU and ANDREW MUKOMA
In Livingstone.
THE banking industry has enough liquidity to service both Government for financing its 2018 national budget through domestic borrowing and the private sector, First National Bank (FNB) Zambia chief executive officer, Leonard Haynes, has said.
According to Mr. Haynes, the available liquidity was as a result of the monetary policy instruments which had been put in place by Government through the Bank of Zambia (BoZ).
Mr. Haynes explained that the instruments were yielding positive results which had since triggered increased liquidity in the financial market.
“I can share for the record that at present, the banking sector is not short of liquidity. Two years ago, liquidity in the market was low but things changed and we are grateful to the Central Bank for its monetary policy which has resulted in availability of liquidity,” he said.
He was speaking yesterday when he officially opened a fully-fledged branch in Livingstone.
Mr. Haynes also said opening the bank’s second point of presence in Livingstone was a clear demonstration of the confidence the institution had in the business environment in the area and the desire to support the growth of the local economy.
“We have evolved out innovative digital platform to specifically meet the needs of tourism businesses located in remote areas away from conventional communications infrastructure,” he said.
And FNB Zambia board chairman Renatus Mushinge observed that Government’s fiscal consolidation measures were critical not only for overall macroeconomic stability but also for promoting private sector access to credit.
Mr. Mushinge said generally there was an increase in economic activity across Zambia with Gross Domestic Product growth rate of about 4.3 percent for 2017, with a forecast of 5.1 percent this year.
He also observed that lowering interest rates and increasing liquidity in the banking sector enhanced the overall productivity of the economy leading to the creation of more jobs.
“We, therefore, commend the continued easing of monetary policy by the BoZ that is intended to support higher economic growth in the country,” he said.
He, however, said the financing of Government budget deficits through borrowing from the domestic financial sector had the potential of limiting access to credit by private enterprises.
On the opening of the new branch, Mr. Mushinge said the vibranco of the local economy in Livingstone had necessitated the bank to invest in the area.
Mr. Mushinge the bank anticipated improved economic and business performance in the general economy this year.
Meanwhile, Livingstones City Mayor Eugene Mapuwo commended FNB Zambia for increasing its investment in the tourist capital beyond its first bank agency which was opened in Spar Supermarket in 2016.
Mr. Mapuwo said that the opening of a fully-fledged branch within two -year period was a clear demonstration of the confidence the bank had in the tourist capital’s local economy and affirmation that the economie prospects of Livingstone were brighter.
“As a local authority, we want to assure the business community and the residents that we will continue to develop the city to ensure its sustainable growth for the benefit of all our stakeholders,
“The opening of the branch is an opportunity for the local business community, especially local entrepreneurs, to access innovative banking services that will improve their business operations,” said Mr. Mapuwo.
“As a tourism city, Livingstone is competing in a rapidly developing global business environment where consumers continually demand for higher service standards.”
He observed that working with financial service providers that were at the forefront of banking innovation such as FNB would allow the local business to compete favourably with the global tourism businesses, thus leading to increase in creation of local employment and wealth.
