Causes & Effects of Financial Exclusion in the Banking Sector: the case of Zimbabwe
The study sought to establish causes and effects of financial exclusion in Zimbabwe from 2009 to 2011 . The study adopted both descriptive and exploratory research designs owing to the qualitative and insightful nature of the study . A diverse sample of 200 comprising bank managers , the unbanked...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | research article |
| Language: | English |
| Published: |
International Journals Of Multidisciplinary Research Academy
2022
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| Subjects: | |
| Online Access: | https://cris.library.msu.ac.zw//handle/11408/5332 http://www.ijmra.us |
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| Summary: | The study sought to establish causes and effects of financial exclusion in Zimbabwe from 2009 to
2011 . The study adopted both descriptive and exploratory research designs owing to the
qualitative and insightful nature of the study . A diverse sample of 200 comprising bank
managers , the unbanked population , bank clients and officials from the Central Bank was used
and the sample was drawn from the three delimited towns. Structured and semi- structured
questionnaires, in-depth interviews and observation were used to gather data from the chosen
sample . The study came out with fundamental findings inter –alia ; the majority of the unbanked
population were in the informal sector , the rural and the low income population, the crisis of
2003 -2008 eroded people‟s confidence in banks resulting in self exclusion, financial exclusion
impacted negatively on the economy as a result of liquidity crunch and an estimated US $ 2.5
billion is circulating outside the formal banking system thereby reducing the country to a “cash
economy,” and the majority of the unbanked are the general population and the small to medium
enterprises who cannot meet the stringent bank loans requirements. Major recommendations are ; the need for banks to increase frequency of their mobile banking units to the marginalized
unbanked in rural areas , banks to revise their bank charges so as to attract and retain depositors,
banks to practice sound corporate governance and business ethics to regain depositors
confidence . |
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