BMI View: The fate of Zimbabwe's financial sector is tied to the country's dysfunctional economy. Headline figures appear positive with rising bank profitability and growth in lending, while the stock exchange is seeing massive growth in capitalisation. However, structural weaknesses threaten to tip the financial sector into crisis. Local banks have been stocking up on treasury bills (TBs) as the government has sought to finance its yawning budget deficits. TBs are high-risk assets and a government default would send the sector into crisis while profits are largely the result of transaction charges rather than a recovery in business. The surge in equities is not related to investor confidence, but rather the lack of other opportunities. The over-valuation of stocks suggests correction is on the horizon with a stock market crash a real prospect.