Banking sector woes to continue �Analysts

Steven Bogatsu will announce FNBB's result on February 19, 2016
Steven Bogatsu will announce FNBB's result on February 19, 2016

The turbulence that has riled the banking sector in the past three years is set to continue due to benign inflation coupled with the flagging economic growth, analysts believe.

In the past three years, banks have seen; tighter liquidity, low interest rate margins as well as a freeze on banking charges eating into their profitability to levels never experienced before.

According to market watchers at Motswedi Securities, both interest and non-interest incomes will continue to be under pressure as the low inflationary pressures provide scope for further interest rate cuts while banking transactions are likely to be also affected by limited disposable incomes due to the weak economy.

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