Research Proposal
GREAT ZIMBABWE UNIVERSITY | BANKING AND FINANCE | RESEACH PROPOSAL FOR | | MUDZENGERERE CARLOS TAKUDZWA M112277 PHEKE EVEREST M112336 MANYANGA COLLINS TATENDA M11222O MUTEMERA TINASHE M113009 MASIYEMVURA BRIGHTON M112985 | TOPIC |
AN INVESTIGATION INTO THE EFFECTIVENESS OF BANK RESTRUCTURING IN RESOLVING THE ZIMBABWEAN FINANCIAL CRISIS |
1. INTRODUCITION
This study will begin by giving a brief outline of what bank restructuring and financial crisis is as it pertains to Zimbabwe. It goes further to give the back ground of the study where the beginning of the financial crisis and restructuring process will be highlighted. In addition, the hypothesis of the study, the scope of the study, the significance of the study as well as the limitations will be discussed in this chapter.
2.2 BACKGROUND OF THE STUDY
Financial crisis involves an economic condition which most companies in the sector are unable to meet falling scheduled obligations. It arises due to financial factors such as too much debt and insufficient capital thus leading to cash flow problems.
A lot can be said about the Zimbabwean banking crisis. This crisis arose as a result of most bankers loosing focus in terms of the fundamentals of bank management due to various macroeconomic factors towards the end of 2003 as highlighted in the Monetary Policy Statement in interest rates as inflation rose above market rates and also exacerbated leading to real rates deterioration.
The Zimbabwean dollar continued to depreciate after 2002 against major currencies as parallel market activities increased. Gross domestic product (GDP), which is also a major indicator of economic performance, plunged to levels below zero percent by December 2003. The market
AN INVESTIGATION INTO THE EFFECTIVENESS OF BANK RESTRUCTURING IN RESOLVING THE ZIMBABWEAN FINANCIAL CRISIS |
1. INTRODUCITION
This study will begin by giving a brief outline of what bank restructuring and financial crisis is as it pertains to Zimbabwe. It goes further to give the back ground of the study where the beginning of the financial crisis and restructuring process will be highlighted. In addition, the hypothesis of the study, the scope of the study, the significance of the study as well as the limitations will be discussed in this chapter.
2.2 BACKGROUND OF THE STUDY
Financial crisis involves an economic condition which most companies in the sector are unable to meet falling scheduled obligations. It arises due to financial factors such as too much debt and insufficient capital thus leading to cash flow problems.
A lot can be said about the Zimbabwean banking crisis. This crisis arose as a result of most bankers loosing focus in terms of the fundamentals of bank management due to various macroeconomic factors towards the end of 2003 as highlighted in the Monetary Policy Statement in interest rates as inflation rose above market rates and also exacerbated leading to real rates deterioration.
The Zimbabwean dollar continued to depreciate after 2002 against major currencies as parallel market activities increased. Gross domestic product (GDP), which is also a major indicator of economic performance, plunged to levels below zero percent by December 2003. The market