Banking system sitting on surplus cash—RBM
Malawi's banks are holding far more cash than they are lending out. The Reserve Bank of Malawi says the system carries substantial liquidity but converts fewer than 40 percent of deposits into loans. Economists see a financing paradox in this. They blame government borrowing and expensive credit, along with weaknesses that make private businesses look risky to finance.
<p>The Reserve Bank of Malawi (RBM) says the country’s banking system is sitting on substantial liquidity, but less than 40 percent of deposits are being converted into loans. But economists have said this scenario exposes a financing paradox that reflects government borrowing, expensive credit and weaknesses that make private businesses risky to finance. The home …</p> <p>The post <a href="https://mwnation.com/banking-system-sitting-on-surplus-cash-rbm/">Banking system sitting on surplus cash—RBM</a> appeared first on <a href="https://mwnation.com">Nation Online</a>.</p>
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