Zimbabwe - Banking SystemsZimbabwe - Banking Systems
Zimbabwe has a well-developed banking sector which is modeled on the British system. The Reserve Bank of Zimbabwe (RBZ) is the central bank which, after years of dollarization, is once again responsible for monetary policy since the introduction the local currency, RTGS dollars, in February 2019. The rest of the banking system is composed of: commercial banks, which are the largest subsector; merchant banks, whose function is to finance trade, underwrite rights offerings of listed companies, and assist in mergers and acquisitions; building societies, which provide mortgages for real estate transactions; the People’s Own Savings Bank and development financial institutions; and micro-finance institutions. Other key players in Zimbabwe’s financial sector include insurance companies, pension and provident funds, investment trusts, and offshore portfolio investors.