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Analysis of the Role of Financial Regulation Framework on Sustainable Risk Management in the Zimbabwe’s Banking Sector

Garikai Muzondo, Vigil Gwaze, Ireen Sibanda, Sithokozile Bafana, Precious Mndava

Abstract

This research paper analyzes the role of the financial regulation framework in promoting sustainable risk management within Zimbabwe's banking sector. Amidst emerging challenges from globalization, including exchange rate volatility and fluctuating global market conditions, effective financial risk management has become increasingly essential for economic stability and growth. The study discusses the implementation of international standards, particularly Basel III, and highlights gaps in their application across diverse banking institutions in Zimbabwe. Using a positivist research philosophy and a quantitative approach, the study examines the effectiveness of current regulatory frameworks and their impact on mitigating risks such as non- performing loans, cybersecurity threats, and liquidity challenges. The research identifies the need for enhanced compliance mechanisms and stakeholder engagement to foster sustainable practices. Findings indicate a strong positive correlation between robust regulatory frameworks and effective risk management, suggesting that policymakers should focus on continuously improving regulatory standards and investing in employee training. This paper contributes to the limited literature on financial regulation's role in sustainable risk management in Zimbabwe, offering insights into the development of effective frameworks tailored to local banking conditions. P-ISSN 2695-186X 1

References

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