Cabs said the banking sector’s deposits amounting to US$1,3 million during that period “were mainly transitory in nature thus limiting the society’s ability to offer long term mortgage advances. At present demand for loans exceeds available deposits”.
The society had a net surplus of US$7,3 million mainly as a result of the increased in fair value of investment properties during the six months.
Cabs said lack of long term deposits had been a major challenge over the second half to December 31 2009.
“The economy is short of long term deposits to support mortgage lending. The society is exploring ways to overcome this challenge through support from the parent company and engagement with government and local authorities to support housing development,” said Cabs chairman Leonard Tsumba when announcing the financial results last week.
Meanwhile, deposits for Tetrad Investment Bank rose by 34% during the last quarter of 2009 to US$10 million from US$7,5 million, due to increased confidence in the bank, which has remained solid after the country’s economy started declining at an alarming rate five years ago. — Staff Writer.