AGRICULTURAL Bank of Zimbabwe Limited (Agribank) chief executive officer Sam Malaba has assumed the Bankers’ Association of Zimbabwe (BAZ) presidency after his election on Tuesday.
He takes over from Barclays managing director George Guvamatanga, who stepped down after his two-year term of office had expired.
Malaba, who was previously vice-president, confirmed the developments.
“Yes, I have been elected the new BAZ president. We held a meeting on Tuesday and MBCA Bank managing director Charity Jinya was also elected as the new vice-president,” he said.
Jinya succeed Malaba as BAZ vice-president, while Sijabuliso Biyam was retained as chief executive officer.
Malaba’s takes over at a time the banking sector is facing a myriad of challenges due to a generally tough economic environment.
According to the latest State of the Economy Report by the Finance and Economic Development ministry, the money supply growth in January 2014 declined by 1,1%, to $3,888 billion from the $3,932 billion recorded in December 2013.
In December 2013, bank deposits were composed of demand deposits at 49,8%, less than 30-day deposits 31,8% and over 30-day deposits 16,2%.
During the month of January 2014, services and financial organisations contributed the bulk of deposits, accounting for 22% and 21% of total deposits, respectively.
According to the report, in the month of January 2014 domestic credit further declined by 2,8% to $3,954 billion from $4,068 billion, reflecting the financial sector’s inability to effectively support the real economy with affordable financing.
Loans and advances to the private sector decreased by 2,3% to $3,954 billion in January 2014 from $3,650 billion in December 2013.
The total banking sector loans and advances, individuals, agriculture, distribution, services and manufacturing accounted for 19%, 18%, 18%, 16% and 15%, respectively.
BAZ was established in 1992 to provide a forum for the consideration of matters of policy and mutual interest concerning member banks. The association provides information, research and operational support services primarily to the banking industry.