Banks penalised for breaching liquidity thresholds
Friday, May 29, 2015
Motsumi
At a press briefing held by the central bank this week, it emerged that at the peak of the liquidity squeeze, some banks fell below the minimum liquidity threshold and were subsequently penalised by the BoB.
The Banking Act prescribes that commercial banks are required to keep at least ten percent of the assets in cash or near cash local instruments to meet short-term depositor obligations.
It is a clear signal that the government’s purse is empty and that our own behaviour has left veterinary officials fighting with one hand tied behind their backs. We have been here before. During COVID-19, many of us thought we knew better. We ignored simple rules, we carried on as if the danger was someone else’s problem, and the virus took lives and left our economy on its knees. We are still broke from that experience. Yet now, with FMD...