[27/12, 07:41] rj: Amid consecutive series of financial crisis, Zimbabweans have lost their hard

earned money due to policy inconsistency. The first crisis of 1996 to 2000 , another spell which went
from 2002 to 2008.The final spell came in 2019 to date. These were characterised with hyper
inflation and policy inconsistency, with the recent Financial crisis headlining the eventual loss of
confidence in the banking sector when all USD balances were changed to RTGS balances through the
Statutory Instrument 33 of 2019, issued by the Reserve Bank of Zimbabwe (RBZ) in February 2019.
This instrument directed banks to separate local currency accounts from foreign currency accounts
and to convert all USD balances held in local currency accounts into Zimbabwe dollar (RTGS)
balances.As a result of this the general public lost large sums of money without compensation, due
to currency devaluation. This study seeks to give suggestions in the bid to regain the public
confidence and strategies to maintain the confidence once it is achieved.

[27/12, 08:11] rj: An example of loss of confidence in the banking sector that had serious economic
consequences was the Global Financial Crisis of 2007-2008. This crisis was triggered by a decline in
confidence in the banking sector, which led to a severe contraction in the global economy. Banks
that were considered “too big to fail” had to be bailed out by governments, and many smaller banks
went bankrupt. The crisis led to high levels of unemployment and a loss of wealth for many people.
It also had a significant impact on the global financial system and resulted in a number of regulatory
reforms to improve the stability of the banking sector.

There were a number of factors that contributed to the Global Financial Crisis. These included:

- An increase in subprime lending and the use of complex financial instruments, such as mortgage-
backed securities, which made it difficult to assess the risk of the underlying loans.

- High levels of leverage (debt) among financial institutions, which made them vulnerable to a
downturn in the economy.

- A decline in housing prices, which led to a wave of defaults on mortgages.

- A lack of transparency in the financial system, which made it difficult to assess the risks of financial
products and institutions.

- A failure of risk management

In Africa, loss of confidence in the banking sector has had a number of negative consequences. In
some countries, such as Zimbabwe, it has led to a sharp decline in the value of the local currency and
a rise in inflation. In others, such as South Africa, it has led to a decrease in lending by banks and a
slowdown in economic growth. There have also been cases of banking crises, such as the one in
Nigeria in 2009, which was triggered by a decline in oil prices and a loss of confidence in the banking
sector. This crisis resulted in a sharp decline in GDP and an increase in unemployment.
Some of the specific causes of loss of confidence in the banking sector in Africa include:

- Weaknesses in the regulatory framework, such as inadequate supervision of banks.

- A lack of transparency in the banking sector, which makes it difficult to assess the risks of financial
institutions.

- A lack of trust in the banking system, which can be caused by a history of corruption or scandals.

- Volatility in the price of commodities, such as oil, which can affect the financial health of banks that
lend to the resource sector.

- Political instability, which can lead to a loss of confidence in the government and the economy as