Expansion of banking in Mozambique remains a priority of Central Bank

30 January 2012

Maputo, Mozambique, 30 Jan – Expansion of banking activities in Mozambique remains a priority of the Bank of Mozambican although the number of districts with banking branches rose from 28 in 2007 to 58 in 2011, said the governor of the Bank of Mozambique.

Speaking at a session of the latest Consultation Council of the Bank of Mozambique, governor Ernesto Gove, cited by Mozambican newspaper Notícias, said that Mozambique is “making significant steps,” towards making banks an integral part of the economy although the district coverage rate is of just 45 percent.

“In 2011, we continued to assist the in the expansion of financial services as part of the strategic aim of ´bancarisation´ of the economy, having increased the number of financial and credit institutions operating in the country and that progress was seen alongside the consolidation of the main indicators of solidity of the financial system, which remained satisfactory and above the levels outlined in the Basil I criteria,” he said.

In a preliminary review, the governor of the central bank noted that, despite the concerns affecting the beginning of 2011, which were the result of a difficult economic situation both domestically and internationally, of risks associated to market volatility, Mozambique managed to return to macro-economic stability.

“The macro-economic results achieved in 2011 certainly reflect the corrective measures we adopted in August 2010, which were based on a more prudent monetary policy, carried out via increasing our interest rates on the Interbanking Monetary Market,” Gove said. (macauhub)