Government’s financial crisis hits commercial banks
Saturday, 02 June 2012

A decision has been made to utilize the investments and deposits in commercial banks for state development programmes. Investment deposits in commercial banks are considered as assets of the banks.

Commercial banks are classifies as weak financial institutions when their investment deposits decline.

However, the government’s decision has placed commercial banks in a risk. The government has decided to use these monies in road development projects and it is learnt that these financial institutions are faced with a huge crisis due to the problems faced in regaining the monies.