The impact of economic sanctions on financial services: a case of commercial banks in Zimbabwe
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The study sought to assess the impact of economic sanctions on financial services offered by commercial banks in Zimbabwe for the purpose of establishing strategies that could be adopted by the affected banks. The study sought to address the following objectives; assess the impact of economic sanctions that affected the financial services offered by commercial banks in Zimbabwe; outline the nature and forms of economic sanctions which affected financial services offered by Zimbabwean commercial banks; and finally craft strategies that could be adopted by commercial banks to lessen the impact of economic sanctions. The study found that trade and financial restrictions were the major forms of economic sanctions which affected financial service provision of commercial banks in Zimbabwe during the period under study. These restrictions resulted in closure of some nostro (foreign) accounts, failure to access offshore lines of credit, difficulties in international money transfers as well as incapacitating financial intermediation. The study recommended that Zimbabwean commercial banks enter into strategic partnerships with some renowned international banks to enable them to survive the challenges posed by economic sanctions. Entering into strategic alliances with other banks (local and international) was also suggested as an option that could lessen the impact of economic sanctions. Diversification of operations in line with the Banking Act to limit the negative effects of economic sanctions was also recommended to commercial banks.