THE banking sector recorded a 5,64 percent increase in the non-performing loans (NPLs) ratio in the final quarter of 2024. Although lower than the 66,83 percent surge at mid-year, the rise still signals growing stress in the loan book.
The NPLs ratio is a key measure of a banking sector’s health, reflecting the percentage of loans where borrowers have failed to make scheduled payments for a significant period.
In his latest Monetary Policy Statement (MPS), the governor of the Reserve Bank of Zimbabwe (RBZ), John Mushayavanhu, reported that the country’s banking sector recorded an aggregate NPLs ratio of 3,37 percent as of December 31, 2024, up from 3,19 percent in September 2024.