When existing lending relationships are broken, time may be required for other banks to establish and build such relationships, allowing lending to resume. The reduction in the availability of credit, however, is not the whole story. There is also less demand for credit. As businesses reduced inventory levels and capital spending, they tended to pay down debt and build cash positions.
Our Vision 2030 envisages the financial sector being transformed into an innovative, vibrant and globally competitive sector to drive high levels of savings to finance the country’s investment needs. The transformation entails doubling deposits mobilization from 44% to 80% of GDP and enhancing growth of savings channelled into productive investments from 14% to over 30%.