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An Overview of Zimbabwe's Financial Sector

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An Overview of Zimbabwe's Financial Sector
1.0 Introduction
The year 2004 will go down in history as a watershed year for the Zimbabwean financial sector. One would wonder why, but if one is conversant with the tragic events of that year, or was employed by one of the sunken banks, there would be no doubt in one’s mind that the year 2004 was arguably the most difficult year for Zimbabwe’s financial sector. As the Reserve Bank of Zimbabwe puts it, in its third quarter monetary policy statement of September 2004, some market analyst likened developments in the country’s financial sector to an “earthquake”.
Many failed banks were occasionally suspended from the country’s clearing system due to failure to fund clearing balances within the stipulated time frames. Time Bank, for example, was suspended twice in October 2004 before being placed under the management of a curator. These institutions continuously experienced clearing deficits and had to raise the required funds as a result of negative market perception.
Therefore, in this research project, the researcher would be evaluating on the impact of technology on asset allocation strategies in Zimbabwe financial institutions for the period 2004 – 2011 (a case study of Homelink Pvt Ltd) faced some challenges in its management of assets.
1.2 Statement of the Problem
The economic growth for the Zimbabwean economy has been on a downward trend for the period 2004 - 2011 and during this period asset allocation strategies declined. The researcher seeks to evaluate the impact of technology challenges on asset allocation strategies in the Zimbabwean financial economy.

1.3 Background of the study
Homelink was established as a money transfer system in 2004 by the Reserve Bank of Zimbabwe. As the money transfer system grew, the Reserve Bank of Zimbabwe transformed Homelink into a Pvt Ltd in February 2005 as a wholly owned subsidiary of the Reserve of Zimbabwe. It quickly became a brand name for the money transfer system in Zimbabwe. At the launch of Homelink in



References: 1) Andrew. W and Underwood D et al (2000) Information Technology Risk Management For Financial Institutions, USA. 2) Banks and banking survey (2007). 3) Bouton and Sumlinki (2000) Microfinance Sector Recovery Study, Boston, USA. 4) Fageber (1996) Technology and Competitiveness, Oxford Review Economic Policy 5) www.dougunderwood.com ICBA Independent Banker April 2011 by Doug Underwood 6) www.suntell.com Underwood. D (2011) New Technologies and Your Audit

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