Public confidence and its impact on the performance and stability of banks in Zimbabwe

Abstract

The study sought to assess the factors determining public confidence and its impact on the performance and stability of banks in Zimbabwe. Empirical data was obtained through the administration of questionnaires to 131 respondents. The study findings were that public confidence in the banking sector was low and it was affected by a number of factors. The study concluded that the low public confidence significantly impacted the performance of banks in Zimbabwe. The study recommended the restoration of the role of the RBZ by capacitating its regulatory, supervisory and monitoring role in the financial sector, strengthening of corporate governance in the banking sector and the review of compensation offered to depositors by the Deposit Protection Corporation.